Efficiency ratios show how much a company is making use of their assets and liabilities to create income for the company. The Inventory days is calculated by taking the inventory turnover ratio dividing the number of days in the year by that figure. When looking at Sainsbury’s inventory days they have maintained a steady number of days which they take to turn over the inventory in the past three years. Whereas Tesco have seen a decrease over the past three years in which the number of days it takes for them to sell all goods. This is a good factor for Tesco as this shows sales have been increasing over the past three years. Regarding Sainsbury’s results as at 2015 this is neither a good or bad thing, as it doesn’t show a decrease in sales yet no increase either. The ratios show how Sainsbury’s have a better control and understanding over their inventory levels on average over the past three years compared to Tesco. However, it has recently been reported that Sainsbury’s inventories days have increased to 22 days, meaning sales are slowing down for Sainsbury’s for the first two quarters of 2016 .The receivable days illustrate how long it can take on average to gain outstanding credit from sales. The ratios show how Sainsbury’s find it less time-consuming to collect credit from trade receivables for each year in the past three years compared to Tesco. These ratios show how Sainsbury’s on average in the past three years have received all money from trade receivables in 6.2 days and not had to pay trade payables for 45.7 days. This meaning that Sainsbury’s could continue being deprived of money.