Ratios | Ratio Analysis | Efficiency Ratios | Activity Ratios | 3 Turnovers | CSEC PoA

In this video I explain how to calculate three (3) efficiency/activity ratios and their counterparts:

the rate of stock turnover | Days Sales / Weeks Sales / Months Sales,
the debtors/receivables turnover | The debtors collection period &
the creditors/payables turnover | The creditors payment period

This video is aimed primarily at CSEC students as the level of analysis illustrated is relatively superficial.

CAPE students might find it good as an introduction to the calculation of the ratio but will not find the level of analysis sufficient for their purposes.

Another series more suited to CAPE Accounting will follow in the future.

You can use the time stamps below to go to specific parts of the video.

00:19 - Intro/Explanation of what ratios are and their use
02:46 - Explanation of activity/efficiency ratios
05:23 - The Rate of Stock Turnover
09:26 - Days Sales / Weeks Sales / Months Sales
11:40 - The Debtors/Receivables Turnover
15:41 - The Debtors/Receivables Collection Period (Days/Weeks/Months)
17:40 - The Creditors Turnover
19:59 - The Creditors/Payables Payment Period (Days/Weeks/Months)
21:14 - Special Note
22:31 - Outro

You can view the entire Ratios playlist using the link below:
   • Ratio Analysis for CSEC (2021)  

If you find that I'm moving too quickly in this video remember:

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#ratios #activityratios #csecpoa