Financial Position/Liquidity Ratios Flashcards
(6 cards)
1
Q
Investor turnover =
A
Cost of sales / Average Inventory
2
Q
Inventory days =
A
Average inv. / cost of sales x 365
3
Q
Receivable days =
A
Trade receivables / credit sales x 365
4
Q
Current ratio =
A
Current assets / Current liabilities
5
Q
Quick ratio =
A
CA - Inventory / CL
6
Q
Payables days =
A
Trade payables / credit purchases x 365