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10 Cards in this Set
- Front
- Back
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Working Capital
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current assets-current liab.
to indicate the ability to meet currently maturing obligations |
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Current Ratio
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current assets/current liab.
to indicate the ability to meet current maturing obligations |
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Quick Ratio
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quick assets/current liab.
to indicate instant debt-paying ability |
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Accts Rec Turnover
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Net Sales/Avg accts rec.
to asses the efficiency in collecting receivables and in the management of credit |
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#'s of days sales in receivables
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avg accts rec/avg daily sales
to asses the efficiency in collecting receivables and in the management of credit |
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Inventory Turnover
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costs of goods sold/avg inventory
to asses the efficiency in the management of inventory |
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#'s of days sales in inventory
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avg inventory/avg daily cost of goods sold
to asses the efficiency in the management of inventory |
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ratio of fixed assets to long-term liabilities
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fixed assets (net)/long-term liab's
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Ratio of liab's to stockholder's equity
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total liab's/total stockholder's equity
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# of times interest charges are earned
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(income before income tax+interest exp)/interest exp
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