Business – 10.2 Analysis of published accounts – Financial efficiency ratios | e-Consult
10.2 Analysis of published accounts – Financial efficiency ratios (1 questions)
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Answer:
| Month | Turnover Ratio |
| January | 45,000 ÷ 15,000 = 3.0 |
| February | 50,000 ÷ 20,000 = 2.5 |
| March | 55,000 ÷ 18,000 ≈ 3.06 |
| April | 60,000 ÷ 22,000 ≈ 2.73 |
The highest turnover occurs in March (≈3.06 times). This indicates that in March the retailer converted its inventory into sales more efficiently than in the other months, suggesting strong demand or effective stock management during that period.