Ratios Flashcards
1
Q
Working Capital Formula
A
Current assets - current liabilities
2
Q
Current ratio formula
A
Current assets/Current liabilities
3
Q
Acid-Test (Quick) Ratio
A
Cash+Cash equivalents + marketable securities + Net Receivables/ Current liabilities
4
Q
Inventory Turnover
A
Cogs/Avg. inventory
365/Inv. Turnover= in days
5
Q
AR Turnover
A
Net credit sales/Avg. AR
365/AR turnover = in days
6
Q
Debt to Equity Ratio
A
Total liabilities/ Common Stock