Sources of capital Flashcards
1
Q
Drags on liquidity
A
- reduce cash inflows
ie: bad debts, obsolete inventory, uncollected receivables
2
Q
Pulls on liquidity
A
- accelerate cash outflows
ie: earlier payments to lenders, reduced credit lines
3
Q
Liquidity ratios:
A
- current ratio
- quick ratio
- cash ratio
4
Q
Activity ratios
A
- receivable turnover
- number of days receivables
- inventory turnover
- number of days of inventory
- payables turnover
- number of days payable
cash conversion cycle
