TABLE OF CONTENTS Logistics is concerned with accounting methods in comparing economic reduction efforts through the identification of support concept alternatives. Many different Figures of Merit (FOM) are provided to help the logistician determine the impact of various decisions upon the company's or program's bottom line.
Measures of efficiency are often called Asset Management Ratios. They indicate how efficient a company manages its assets.
The number of times trade payables turnover during the year. The higher the turnover is, the shorter the time between purchases and payments. A low turnover might indicate a shortage of cash to pay bills or other reasons for payment delays:
The number of times trade receivables turnover within a year. The higher the turnover, the shorter will be the time between sales and cash collection:
This indicates the liquidity of the company's receivables in calendar days. It is the average length of time trade payables are outstanding before they are paid. Trends reflect a company's payment habits:
This is a measurement of how effective a company is utilizing its cash:
This indicates the average number of days required to sell the current inventory. It is also used to compare calculated days in the inventory cycle:
This indicates the average number of days necessary to collect accounts receivable. Trends can indicate a change in customer's payment habits:
This measures line items filled versus...
