Formula Flashcards
1
Q
Vertical analysis
A
$Amount of the Line Item÷$Amount of the Base
2
Q
Amount of change method:
A
Current Period − Prior Period = Amount of Change
3
Q
Net Working Capital Ratio
A
Net Working Capital ÷ Total Assets
This ratio is most meaningful when net working capital is a positive amount. A negative amount indicates that the current liabilities are greater than the current assets the company has.
