Solvency/Liquidity Flashcards
1
Q
Current ratio
A
(Cash + Marketable securities + AR + Inventory + Prepaid Expenses + other current assets)
÷
AP + short term payables + accrued expenses + current portion of long term debt
2
Q
Quick ratio
A
(Cash + Marketable securities + AR )
÷
AP + short term payables + accrued expenses + current portion of long term debt
3
Q
Cash ratio
A
(Cash + Marketable securities )
÷
AP + short term payables + accrued expenses + current portion of long term debt
4
Q
Operating CF ratio
A
Operating CF/current liabilities
5
Q
Equation: Net Working Cash Flow Ratio
A
Current Assets - Current Liabilities
÷
Current Assets
6
Q
Equation: Working Capital Turnover
A
Net sales
÷
working capital
