Liquidity and Efficiency Flashcards
1
Q
Current Ratio
A
Current assets/current liabilities
2
Q
Acid-test ratio
A
Cash+ short term invest.+ current AR / current liabilities
3
Q
A/R Turnover
A
Net sales/Average AR, net
4
Q
Inventory Turnover
A
COGS/Average inventory
5
Q
Days’ sales uncollected
A
AR net/net sales * 365
6
Q
Days’ sales in inventory
A
EI/COGS * 365
7
Q
Total asset turnover
A
Net sales/Average total assets
