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ratio analysis
the formula of debtor turnover ratio= credit sale/average debtor. but in module they apply this formula but they doesn't take average. which one we will apply for examination
Replies (3)
Better use average debtors fro calculation
Another also there debtor turnover ratio = credit sales/ closing debtor
if it's possible to take average always take average
and if opening debtors isn't available use closing debtors as avg debtors on the assumption that opening and closing are equal
and if opening debtors isn't available use closing debtors as avg debtors on the assumption that opening and closing are equal
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