Formulas Flashcards
0
Q
Current ratio
A
CA/CL
1
Q
Working cap
A
CA - CL
2
Q
Acid test ratio
A
(Cash equiv + mkt sec + net rec)/CL
3
Q
Cash ratio
A
(Cash equivalent + mkt sec)/CL
4
Q
AR T/O
A
Net cr sales/avg net rec
5
Q
AR T/O in days
A
365/AR T/O
6
Q
Inv T/O
A
COGS/avg inv
BI
+ purch
COGS
= EI
7
Q
Inv T/O in days
A
365/inv T/O
8
Q
Operating cycle
A
AR T/O in days + inv T/O in days
9
Q
Working cap T/O
A
Sales/avg working cap
10
Q
TAT
A
Net sales/avg TA
11
Q
AP T/O
A
COGS/avg AP
12
Q
Days in AP
A
Avg AP/(COGS/365)
13
Q
Net PM
A
NI/net sales
14
Q
Return on TA
A
NI + int exp/avg TA
