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AUD - Financial Ratios > Liquidity Ratios > Flashcards

Liquidity Ratios Flashcards

1
Q

Working capital formula

A

= current assets - current liabilities

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2
Q

Current ratio (working capital ratio)

A

= current assets / current liabilities

the company’s ability to meet it’s ST obligations

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3
Q

acid-test ratio

A

= (cash equivalents + marketable securities + AR) / current liabilities

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4
Q

cash ratio

A

= (cash equivalents + marketable securities) / current liabilities

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AUD - Financial Ratios (4 decks)

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