1
Q
Current ratio
A
Current assests/current liabilities
liquidity
2
Q
Quick Ratio (QR)
A
(Current assets- inventory)/ current liabilities
liquidity
3
Q
Average collection period (ACP)
A
Accounts receivable/ daily credit sales
(liquidity)
[DCS= sales/365]
4
Q
Accounts receivable turnover
A
credit sales/ accounts receivable
liquidity
5
Q
inventory turnover
A
cost of goods sold/ inventory
liquidity
6
Q
Total asset turnover (TAT)
A
sales/total assets
efficiency
7
Q
Fixed asset turnover
A
sales/fixed assets
efficiency
8
Q
Operating income on return on investment (OIROI)
A
Earnings before tax and interest/ Total assets
[EBIT= sales-interest-tax)
Finance
flashcards
Decks in class (3)
# Cards
