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Business > Financial Accounting Formulas : Liquidity + Gearing > Flashcards

Financial Accounting Formulas : Liquidity + Gearing Flashcards

1
Q

Current ratio ?

A

Current assets / current liabilities

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2
Q

Acid test ratio ?

A

Current assets - inventories / current liabilities

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3
Q

Capital gearing ?

A

Long term loans / equity + long term loans

%

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4
Q

Interest cover ?

A

Operating profit / interest

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