6
FATR
=
4 912583598
860595457
5.40
4.13
Comment:The resources are completely utilized because the ratio has been increased from 4.13% to 5.40% 5 . Debtors Turnover ratio Credit Sales Average Accounts Receivable Credit sales = Debtors
=
DTR
=
DTR
=
493097958 4 126978458 0
355797173 6 113395071 8
493097958 4 126978458 0
355797173 6 113395071 8
3.88
3.14
Comment:The company was able to collect debt promptly from its debtors because the ratio is increasing from 3.14 to 3.88
6 . Creditors Turnover ratio Credit Purchase Average Account Payable Credit Purchase = 30