Current ratio and acid-test ratio of Marks and Spencer decreased by 0.16 and 0.17 respectively in 2013 due to the reduction in cash, short-term financial assets and trade payables, and increase in trade and other payables, and short-term borrowings. Inventory turnover period of the company increased from 40.28 days in 2012 to 44.95 days in 2013. This indicates the number of days that the company takes to turn their raw materials into cash. The increase in inventory (12.52%) and decrease in cash (3.16%) in 2013 confirms this. Average collection period decreased from 4.25 days to 4.14 days in 2013. This indicates the effective collection of cash from receivables. The decrease in trade receivables (3.16%) reveals this. However, the cash and cash equivalents are not increased due to short-term investment and their effective interest rates. The average payment period is calculated by taking the current year trade and other payables into account; it increased slightly from 56.68 days to 56.99 days in 2013. The increase in trade payables confirms this.