Liquidity Ratios Flashcards
1
Q
Quick Ratio
A
(Current Assets - Inventory) / Current Liabilities
2
Q
Current Ratio
A
Current Assets / Current Liabilities
3
Q
Average Collection Period
A
Accounts Receivable / Daily Credit Sales
4
Q
Accounts Receivable Turnover
A
Credit Sales / Accounts Receivables
5
Q
Inventory Turnover
A
COGS / Inventory