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About: Efficiency     Goto   Sponge   NotDistinct   Permalink

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Efficiency in financial management is assessed mainly through efficiency financial ratios. They assess if an organization is using its resources in an efficient way. The main efficiency ratios are: • Inventory Turnover = CoGS/Average Inventory Costs • Accounts Receivable Turnover or collection period = Sales or Net Sales/Average Accounts Receivables • Accounts Payable Turnover = Credit Purchases/Average Accounts Payables