Liquidity and financial efficiency formulas

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  • Created by: lara__001
  • Created on: 21-02-20 12:48
Which formula is used to calculate liquidity?
current ratio = (current assets / current liabilities) *100
1 of 5
Financial efficiency: which is the correct formula for payables days?
(trade payables / cost of sales) *365
2 of 5
Financial efficiency: which is the correct formula for receivables days?
(trade receivables / revenue) *365
3 of 5
Financial efficiency: which is the correct formula for inventory turnover?
cost of sales / average stock held
4 of 5
Financial efficiency: which is the correct formula for gearing?
(non-current liabilities / total equity + non-current liabilities) *100
5 of 5

Other cards in this set

Card 2

Front

Financial efficiency: which is the correct formula for payables days?

Back

(trade payables / cost of sales) *365

Card 3

Front

Financial efficiency: which is the correct formula for receivables days?

Back

Preview of the front of card 3

Card 4

Front

Financial efficiency: which is the correct formula for inventory turnover?

Back

Preview of the front of card 4

Card 5

Front

Financial efficiency: which is the correct formula for gearing?

Back

Preview of the front of card 5

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