Which of the following is not a ratio included in analysis of the operating cycle?
A)Days to collect receivables.
B)Days to sell inventory.
C)Days to pay payables.
D)Days sales in inventory.

Question

Quizplus · Accepted Answer

Days sales in inventory is a ratio included in analysis of the operating cycle. It measures the average number of days it takes for a company to sell its inventory. The other three ratios listed (days to collect receivables, days to sell inventory, and days to pay payables) are all included in the analysis of the operating cycle.

Which of the Following Is Not a Ratio Included in Analysis