1. Evaluation of Business Performance
... in an increase in selling price. However if the sales increased selling decreases this will increase the average numbers of days it took to convert stock into cash which can lead into a deterioration of liquidity in Sacko's sports store. The reason why net profit isn't improving could ... Remarkably, debtor's turnover was increasing favourably from 2012 to 2014 going from about 24 to 29. Debtor's turnover measures the number of days to convert sales into cash. This could have increased due to the new credit facility they have. Due to an increase in debtor's turnover, this ... bad there...
- Word Count: 1212
- Approx Pages: 5