Efficiency ratios

Unit 15: Analysis of Financial StatementTopic 6 of 8

Browse the Financial Accounting and Analysis syllabus

Financial Accounting and Analysis

15 units

1 Basic Understanding of Financial Accounting
2 Conceptual Framework of Accounting
3 Accounting Process
4 Accrual Basis of Accounting
5 Accounting for Inventories and Cost of Goods Sold
6 Accounting for Cash and Internal Control
7 Accounting for Receivables
8 Accounting for Current Liabilities and Contingencies
9 Accounting for Long-Lived Assets
10 Accounting for Long Term Liabilities
11 Accounting for Shareholders' Equity
12 Basic Financial Statements
13 Cash Flow Statement
14 Value Added Statement
15 Analysis of Financial Statement

On this page

What the syllabus expects

Stock turnover
Receivable turnover and collection period
Payable turnover and payable period
Fixed-assets turnover
Total-assets turnover
Capital-employed turnover
Calculation and interpretation

Efficiency ratios

Bachelor of Business Studies (BBS) — First Year

Subject: Financial Accounting and Analysis (MGT 211)

Unit 15: Analysis of Financial Statement

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

Explain the scope and key elements of efficiency ratios.
Identify the accounting treatment, prepare relevant records or calculations and interpret their financial effects.

Curriculum Scope

Stock turnover
Receivable turnover and collection period
Payable turnover and payable period
Fixed-assets turnover
Total-assets turnover
Capital-employed turnover
Calculation and interpretation

Detailed Microsyllabus

Working-capital efficiency
1. Stock turnover using a consistent cost basis.
2. Receivable collection period.
3. Payable payment period with relevant purchase or cost information.
Asset and capital efficiency
1. Fixed-asset and total-asset turnover.
2. Capital-employed turnover.
3. Calculate and interpret using consistent average balances.

Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 20-22.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here.