Introduction

5th Edition

Efficiency ratios is what we learn in this chapter. These calculations include stock turnover, debtor days, creditor days and the gearing ratio.

The stock turnover calculation measures how fast a business sells their inventory of products.

The debtor days calculation measures how long it takes for a business to collect its debts from customers.

The creditor days calculation measures how fast a business can pay back its debts.

The gearing ratio calculation shows the percentage of debt that is included in a company's bank account.



Course curriculum

  • 1

    Course Information & Support

    • Please Check Now That Your Phone Is In Your Bag. Please Stay For 40 Minutes Of Learning & Sign Out For The Bathrrom During The Last 5 Minutes of Class.

    • Only Use The Laptop Assigned To You. Return To Assigned Slot With No Slack Cord.

    • Please Don't Disrupt Our 40 Minute Work Cycle. Leave For The Bathroom During The LAST 5 MINUTES Of Class.

    • Supply Check Is On The First Resource Bank Day Of Each Quarter

    • How Well Are You Demonstrating The IB Learner Characteristics? Which Is Your Super Power & Which Presents The Greatest Challenge?

    • Do You Skip Class?

    • Fact Sheet Packet Of Class Policies- Please Scroll Through And Review Again

    • Meet Your Teacher: Dr. Eva Bogard

    • You Should Do An Internship Every Year Until You Graduate From College

    • Welcome IB Business Management Student

    • Here Is The Master Plan...

    • The IB BM Syllabus Consists Of 5 Units With A Total Of 40 Total Chapters ("Courses") That You Are Responsible For Learning

    • The Official IB Business Management Guide & Syllabus

    • The Full IB BM Textbook Is In TEAMS

    • Chapter Work Cycle =The Same 7 Day Format For Each Chapter. You Always Know What We Are Doing In Class & What Is Assigned For Homework.

    • DUE DATES & DEADLINES

    • Late With A Good Reason Is Still Late (Missing Work Submitted After 5 Calendar Days = 0%).

    • Your Makeup Day From An Absence Is The Following Class Day. Read Instructions Carefully & Review Policies When Absent.

    • Finished Early? Don't Pack Up! Do This ...

    • Finished Early? Keep Track Of Current Events In The Business World
  • 2

    The Notebook Project - A Daily Learning & Study Tool

    • Read The Rules For Your Notebook Project Before Every Grading Day. This Paper Must Be Stapled Onto The Inside Cover Of Each Composition Notebook

    • Your Notebook Project Helps You Build Strong Attention To Detail. This Is A Valuable Life Skill.

    • LOOK: Page-By-Page Visual Instructions To Help You Earn a 100% On Every Notebook Project.

    • A 100% Notebook Project Sample - Make Yours Just As Nice.

    • A 100% Notebook Project Sample - Compare Yours.

    • Notebook Checklist & Reflection Sheet (The Blue Sheet). Complete & Staple Onto The Last Page Of Your Chapter Notes BEFORE Scoring Day. This Blue Color Checklist Is Available In Class Or You Can Print It Yourself.
  • 3

    Start Your Notebook Project By Outlining This Chapter. Then Outline A Long IB Exam Answer Using A Spider Map.

    • New 3.6 Chapter = 7 Headings (Title Your New Page: "Efficiency Ratio Analysis")

    • Hey There! You Will Need A New Blank IB BM Composition Notebook By The End Of This Chapter.

    • Can You Listen To Music? Yes, But Only If You Follow All The Rules.

    • Review The Instructioons For These Two Assignments

    • LOOK: A Visual Guide For How To Create Your Outline. There Are Also Samples Posted In The Notebook Section Above. Great Attention To Detail = 100%

    • How To Draw A Spider Map

    • Video: Watch A Spider Map Being Created

    • LOOK: This Is What A Great Spider Map Looks Like. Use This Sample As Your Model.
  • 4

    "RESOURCE BANK" = Topic Lessons (24) Begin Below this Point:

    • Hey There! You Will Need A New Blank IB BM Composition NotebookBy The End Of This Chapter.

    • No Music On RB Days. Plug In Your Ear Buds. Place Them In Your Ears & Use Them To Listen & Learn From The Video Lessons.

    • What is the Resource Bank?

    • SL Learns HL Content

    • Review The Instructions For This RB Assignment.

    • Take Good Notes - These Posts Contain The Content You Want To Write On The IB Exams

    • LOOK: This Is What A Great RB Page Looks Like. Use This Sample As Your Model.

    • Important Detail: Remember To Highlight The RB Section Titles & Number All Posts Consecutively

    • RB = 8 Sections With 24 Posts (= 2 RB Days + HW)

    • What You Should be Able to Do By the End of this 3.6 Chapter
  • 5

    Efficiency Ratios

    • Key Terms: Creditor vs. Debtor

    • Key Term: Ratio Analysis

    • Video: Five Financial Ratios Explained In 5 Minutes

    • Video: What Are Receivables and Payables?

    • Exam Tip: Five Major Limitations Of Financial Ratios
  • 6

    Stock Turnover (also called Inventory Turnover)

    • Video: What Is Inventory Turnover?

    • Video: How To Calculate Stock Turnover

    • Video: The Inventory Turnover Ratio

    • Video: Advanced Explanation Of The Value Of Calculating And Understanding The Inventory Turnover Number (Write it all down and say this on the exam!)

    • Exam Tip: A Worked Out Example Of A "Stock Turnover" Question
  • 7

    Debtor Days

    • Video: How To Calculate Debtor Days

    • Video: "Receivables Days/Debtor Days" Ratio

    • Video: 5 Tips For Improving Debtor Management - Take notes and say this on the exam

    • Exam Tip: A Worked Out Example Of A "Debtor Days" Question
  • 8

    Creditor Days

    • Video: Creditor Days (365 calculation)

    • Video: "Creditor Days/Payables Days" Review

    • Exam Tip: A Worked Out Example Of A "Creditor Days" Question
  • 9

    Gearing Ratio

    • Video: Gearing Ratio

    • Video: The Ratio Analysis Called "Gearing"

    • Exam Tip: A Worked Out Example Of A "Gearing Ratio" Question

    • Exam Tip: How To Change The Gearing Ratio

    • Key Term: Efficiency vs Liquidity

    • Handout: Is A High Gearing Ratio Always Bad?
  • 10

    Insolvency vs. Bankruptcy

    • Bankruptcy Is A Legal Condition & Insolvency Is A Financial Situation (Stop Watching At 2:30 Minutes)
  • 11

    Efficiency Ratio Analysis & The CCES Concepts (Creativity-Change-Ethics-Sustainability)

    • Hey There! You Will Need A New Blank IB BM Composition Notebook By The End Of This Chapter.

    • Review The Instructions For The CCES Assignment.

    • Read These CCES Definitions. If You Write Them On Your May Exams You Get Credit For Clear Evidence of "Synthesis & Evaluation"

    • Your CCES Assignment Begins At The Top Of A New NB Page: Title= CCES, Then Write 4 CCES Impact Statements For This Chapter Following The Model.

    • LOOK: This Is What A Great CCES Page Looks Like
  • 12

    Case Studies Assignment: This Is Your Practice For The Senior May IB Exams.

    • You Will Need Your IB BM Exam Prep Notebook Every Day During The Week Before Spring Break.

    • This Was The Real May 2024 IB BM Standard Level (SL) Paper 2 Exam. Get A Feel For It Now. Know That We Are Preparing For It Every Day In Class & For Homework So You Will Have The Best Chance Of Earning Your Best Score.

    • This Was The Real May 2024 IB BM Higher Level (HL) Paper 2 Exam. Get A Feel For It Now. Know That We Are Preparing For It Every Day In Class & For Homework So You Will Have The Best Chance Of Earning Your Best Score.

    • Exam Tip: Paper 2 Section B (2024-2028)

    • Step-By-Step Instructions For Doing Your Case Studies As Practice For Your Senior May Exams

    • LOOK: This Is What A Completed & Corrected Case Study Analysis Looks Like. Use This Sample As Your Model.

    • Bank Loans = Long-term Liabilities

    • See How The IB BM Command Terms Are Organized

    • What Are Command Terms & Why Are They Important?

    • Old Command Terms List = Rules for Answering Test Questions

    • New Command Terms Definitions List (2024+)= Directions for Answering Test Questions

    • Chapter 3.6 Has 3 Case Studies. Do All 3.

    • Special Instructions For After You Finish The Examiners' Notes & Scoring
  • 13

    Review Day Activities + Presentation Day

    • Reminder: You Need Your New IB BM Exam Prep Composition Notebook.

    • Attention: You Have Special Exam Prep Work For The Week Before Spring Break! We Will Go Back To The Regular Work Cycle After Spring Break.

    • Read & Follow These Review Day Instructions

    • WATCH: 3.6 Chapter Review With Mr. L

    • Study This Handout: How To Interpret Ratios

    • LOOK: This Is What A Great Chapter Review Page Looks. Use This As Your Model.

    • What Should You Do If You Get Stuck On A Question? Don't Skip It! Do This...

    • Here Are The 3.6 Review Worksheets With 7 Tasks & 15 M/C. Title The Top Of A New Page. Then Label The Tasks And Write The Answers In Your Composition Notebook.

    • Presentation Day Instructions

    • Have You Achieved the 3.6 Key Learning Outcomes?

    • You Are Almost Finished!

    • Video: Accountant Humor (Top 10 Reasons Why An Accountant Is Cooler Than You Think)

    • Don't Forget The Last Piece!

    • Memorize & Review These 3.6 Exam Formulas

    • 3.6 Quizlet

    • FINISHED EARLY? THERE'S NO TIME TO WASTE! DO THIS ...
  • 14

    3.6 Quiz Day: Write Your Score In Your Notebook At The Top Of The Shark Tank Page In Red Ink.

    • Come Here On Quiz Day If You Are In The Classroom - Makeups Are On The Day You Return

    • After This 3.6 Quiz Go Straight To The New IB BM May Exam Prep Course

    • AFTER THE 3.6 QUIZ- GO TO THE EXAM PREP COURSE

    • Blue Sheet Instructions. Pick Up A Blue Checklist & Reflection Handout To Complete & Staple Into Your Notebook

    • Due Today On Quiz Day (Before Midnight) Is Your Completed Chapter Notebook Project
  • 15

    3.6 EXAM PREP: Complete This Section In Your IB BM Exam Prep Composition Notebook. Make A Divider. Start After Review Day Presentations. It Is Included In Your Final Exam Grade.

    • All Exam Practice Work Goes In Your Special "Exam Prep" Composition Notebook. Do It After Review Presentations & After The Chapter Quiz.

    • Video: Giant Review Of Liquidity and Efficiency Ratios - Take Notes On This

    • Video: Quick Review Of The Limitations Of Ratio Analyses (You Need To Say This Along With Your Calculations) - Take Notes On This Again

    • Handout: On The IB Exam Day You Get This Formula Sheet With ALL Of The Ratio Analysis Formulas! List The Names Of The Formulae Provided On Exam Day.

    • Be Able To Explain How A Business Can Improve Their Efficiency Ratios

    • Handout: Exam Tip & Review Assignment- Take Notes On This

    • Exam Practice: Stock Turnover & Debtor Days (= Efficiency Ratios) + Current Ratio (= Liquidity Ratio)

    • Quizlets To Study (No Written Work)