Liquidity Indicators Flashcards
1
Q
Liquid capital (quick) ratio
A
Current assets - inventory
Current liabilities
2
Q
Accounts receivable collection period
A
Trade receivables X 365
Sales revenues
3
Q
Accounts payable payment period
A
Trade payables X 365
Cost of sales
4
Q
Inventory holding period
A
Inventory X 365
Cost of sales
5
Q
Current ratio
A
Current assets
Current liabilities