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Business Formulas > Measuring Liquidity > Flashcards

Measuring Liquidity Flashcards

1
Q

Current ratio

A

Current assets / current liabilities

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2
Q

Liquid capital ratio

A

Current assets - inventory / current liabilities

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3
Q

Trade payable days

A

Trade payables / credit purchase x365

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4
Q

Trade receivable days

A

Trade receivable/ credit sales x365

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Business Formulas (7 decks)

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