Ratio Analysis Flashcards
1
Q
Current Ratio
A
= Current Assets / Current liabilities
2
Q
Quick Ratio ( liquidity Ratio )
A
= Current Assets - Inventory / Current liabilities
3
Q
A/R Turnover
A
= Sales / Average A/R , Average = Beginning + Ending/2
4
Q
Days in A/R turnover
A
= A/R ending balance / ( Sales/365)
5
Q
Inventory turnover
A
= COGS/Average inventory
6
Q
A
