Liability ratios Flashcards
1
Q
current ratio eq
A
current assets / current liability
2
Q
quick ratio eq
A
(cash + marketable securities + account receivable) / current liability
3
Q
cash ratio eq
A
(cash + marketable securities) / current liability
4
Q
operating cash flow ratio eq
A
cash flow from operating activites / current liability
5
Q
debit to equity eq
A
total liabilities / total equity
6
Q
debt total assets
A
total liabilities / total assets
7
Q
long term debt to equity
A
long term debt / total equity
8
Q
times interest earned (accural basis)
A
operating income / interest expense
9
Q
times interest earned (cash basis)
A
(Cash flow from operations + tax paid + interest paid) / interest paid
