Efficiency Ratios

  • Yannick Coulon


The second chapter focuses on working capital and its associated metrics, namely inventory days, accounts receivable and accounts payable days.

It differentiates between working capital and non-cash working capital from operations. Working capital management is essential to provide sufficient cash for operations. Several brief case studies and illustrations help the reader understand the concept and review the application of working capital metrics in a business context. Key takeaways on working capital metrics and their limitations conclude the chapter.


Non-cash working capital Working capital management Inventory days Accounts receivable days Accounts payable days 

References and Further Reading

  1. Anthony, Robert N., and James S. Reece. 1989. Accounting: Text and Cases. Irwin.Google Scholar
  2. Coulon, Yannick. January 2017. Guide pratique de la finance d’entreprise. Gualino.Google Scholar
  3. ———. September 2018. L’essentiel des ratios financiers. Maxima Laurent du Mesnil.Google Scholar
  4. Quiry, Pascal, and Yann Le Fur. 2019. Finance d’entreprise 2020 de Pierre Vernimmen. Dalloz.Google Scholar
  5. Stowe, John D., Thomas R. Robinson, Jerald E. Pinto, and Dennis W. McLeavey. August 2002. Analysis of Equity Investments: Valuation. AIMR and CFA Institute.Google Scholar
  6. Thibierge, Christophe. November 2013. Comprendre toute la finance, 2ème édition. Vuibert.Google Scholar
  7. Walsh, Ciaran. 2008. Key Management Ratios, 4th ed. Financial Times Series. FT Prentice Hall. Pearson Education Limited.Google Scholar

Copyright information

© The Author(s) 2020

Authors and Affiliations

  • Yannick Coulon
    • 1
  1. 1.Brest Business SchoolBrittanyFrance

Personalised recommendations