Equations Flashcards
1
Q
Whats the equation for cash conversion cycle?
A
cash conversion cycle =
days inventory + days recievable - days payable
2
Q
what is the q rratio?
A
The q ratio is the ratio between physical assets and their replacement value.
q ratio = market value of assets / replacement cost of capital
However, it can be difficult to estimate the replacement costs of assets.
q ratio = (equity market value + liabilities market value) / (equity book value + liabilities book value)
3
Q
How is the impairemnt loss treated for intangible assets?
A
4
Q
A
