Efficiency ratios for a Telecom

Hi Guys,

Am analysing a telecom and am wondering whether its good to calculate efiiciency ratios such as inventory and accounts payable ratios. If we look deeper at the payables and accrued expenses, I find that network infrastructure is a big component. This is a capital expenditure and i don’t see a link between that line item in the balance sheet and the income statement.

I was trying to forecast some lines items(inventories, accounts payable and receivables) using those efficiency ratios.

  1. Is it a good idea to caluclate efficiency ratios ?

  2. How would you forecast the aforementioned line items?

I’ll appreciate any suggestion.

Regards,

Sam from Kenya.