What are the different types of Performance Ratios?

Expert Solution

performance ratios are the ratios that the depicts the ability of a company to turn its assets into revenues and the efficiency by which the company turns converts its sales into cash.

Different types of performance ratios are:

1) Gearing ratio = Total borrowings/net worth

2) Debtors turnover ratio = Net credit sales/Average trade debtors

3) Creditors turnover ratio = Purchases/Average trade creditors

4) Stock turnover ratio= Cost of goods sold/Average stock

jeff jeffy answered 1 year ago

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