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Business Formulas > Measuring Liquidity > Flashcards

Measuring Liquidity Flashcards

1
Q

Current Ratio

A

Current Assets/Current Liabilities

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2
Q

Liquid Capital Ratio

A

Current Assets - Inventory/Current Liabilities

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3
Q

Trade Receivable days

A

Trade Receivables/Credit Sales X 365

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4
Q

Trade Payable Days

A

Trade Payables/Credit Purchases X 365

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Business Formulas (7 decks)

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