ratios Flashcards
1
Q
current ratio
A
current assets : current liabilities
2
Q
liquidity
A
current liabilities
3
Q
trade receivables
A
trade receivables
————————– x 365
credit sales
4
Q
trade payables
A
trade payables
———————– x 365
credit purchases
5
Q
return on capital employed
A
net profit
—————- x 100
cap employed
6
Q
inventory turnover
A
average turnover
————————- x 365
cost of sales
