Liquidity And Working Capital Ratios Flashcards

1
Q

Current ratio

A

Current assets
————————
Current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Quick ratio or acid test

A

Current assets - inventory
————————————
Current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Average receivables collection period or debtors days

A

Trade receivables
———————— x365
Credit sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Average payable period or creditor days

A

Trade payables
————————x365
Credit purchases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Average inventory holding period or stock days

A

Closing inventory
————————x365
Cost of sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Inventory turnover

A

Cos
—————————
Closing inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly