|
Trade Credit
as % Shareholders' Funds
|
Trade
Creditors x 100 |
|
Shareholders' Funds
(bottom of balance sheet) |
Benchmark: 25 – 30%
Credit given by suppliers as
a percentage of shareholders’ funds (money supplied by shareholders, reserves
and the balance from the profit and loss account)
The ratio shows how important
suppliers are in funding the business. See
trade credit ratios, also, it may be worth comparing this to gearing %
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