Meaning

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Querist : Anonymous (Querist)

05 May 2015
1.Debtor days
2.Creditor days
3.Inventory days
4.Working capital
5.Capital employed

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CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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05 May 2015 Debtor Days the average number of days it takes a company to receive payment from its debtors

Creditor days : Opposite of above

Inventory days : The calculation of the days' sales in inventory is: the number of days in a year (365 or 360 days) divided by the inventory turnover ratio. For example, if a company had an inventory turnover ratio of 9, the company's inventory turned over 9 times during the year.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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05 May 2015 Working capital is a common measure of a company's liquidity, efficiency, and overall health

Capital employed represents the capital investment necessary for a business to function

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