Ratio Analysis And Communication Formats: Efficiency Ratios Calculation Table Format (Copy)
Efficiency Ratios Calculation Table Format
Standard Efficiency Ratios Calculation Table (Exam-Preferred)
Efficiency Ratios – Calculation Table
| Ratio | Formula | Calculation | Result |
|---|---|---|---|
| Inventory Turnover Period | Inventory ÷ Cost Of Sales × 365 | xxxx ÷ xxxx × 365 | x days |
| Trade Receivables Collection Period | Trade Receivables ÷ Revenue × 365 | xxxx ÷ xxxx × 365 | x days |
| Trade Payables Payment Period | Trade Payables ÷ Cost Of Sales × 365 | xxxx ÷ xxxx × 365 | x days |
- Always Use Days
- Always Multiply By 365
- Always Show Working
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Expanded Efficiency Ratios Working Table (High-Scoring Format)
Efficiency Ratios – Full Working Table
| Ratio | Figures Used | Working | Final Answer |
|---|---|---|---|
| Inventory Turnover Period | Inventory = xxxx, COS = xxxx | (xxxx ÷ xxxx) × 365 | x days |
| Receivables Collection Period | Receivables = xxxx, Revenue = xxxx | (xxxx ÷ xxxx) × 365 | x days |
| Payables Payment Period | Payables = xxxx, COS = xxxx | (xxxx ÷ xxxx) × 365 | x days |
- Examiner Can Track Exact Figures
- Prevents Method Mark Loss
Inventory Figure Working (Linked Format)
Inventory Figure Used
| Inventory Type | Amount |
|---|---|
| Closing Inventory | xxxx |
- Closing Inventory Used Unless Otherwise Stated
- Do Not Use Average Inventory Unless Given
Revenue And Cost Of Sales Cross-Check (Linked Format)
Income Statement Figures
| Item | Amount |
|---|---|
| Revenue | xxxx |
| Cost Of Sales | xxxx |
- Revenue Used Only For Receivables Ratio
- Cost Of Sales Used For Inventory And Payables Ratios
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Efficiency Ratios Table Without “Days” (Common Error – Avoid)
| Ratio | Working | Answer |
|---|---|---|
| Inventory Turnover | xxxx ÷ xxxx × 365 | x |
- Always Write “Days”
- Missing Unit Loses Marks
Efficiency Ratios Without Table (Short Question Format)
Efficiency Ratios
- Inventory Turnover Period = (Inventory ÷ Cost Of Sales) × 365 = x days
- Trade Receivables Collection Period = (Trade Receivables ÷ Revenue) × 365 = x days
- Trade Payables Payment Period = (Trade Payables ÷ Cost Of Sales) × 365 = x days
- Accepted In Short Structured Questions
- Clear Layout Still Required
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Efficiency Ratios Included At AS Level
- Inventory Turnover Period
- Trade Receivables Collection Period
- Trade Payables Payment Period
Efficiency Ratios Not Used At AS Level
- Inventory Turnover (Times)
- Asset Turnover Ratio
- Working Capital Turnover
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Presentation Rules For Efficiency Ratios (Exam Scoring)
- Always Use Correct Numerator And Denominator
- Always Multiply By 365
- Use Same Year Figures
- Show Final Answer In Days
- Show Full Working
Common Labels Used In Efficiency Ratio Tables
- Inventory
- Cost Of Sales
- Trade Receivables
- Revenue
- Trade Payables
Compact Efficiency Ratios Table (Emergency)
| Ratio | Working | Result |
|---|---|---|
| Inventory Period | xxxx ÷ xxxx × 365 | x days |
| Receivables Period | xxxx ÷ xxxx × 365 | x days |
| Payables Period | xxxx ÷ xxxx × 365 | x days |
One-Glance Exam Template
Efficiency Ratios
Time-Based
Always In Days
Use 365