Measuring liquidity & efficency

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  • Created by: mxox
  • Created on: 26-12-21 11:20
Current ratio=
Assets/liabilities
1 of 6
Liquid capital ratio=
assets-inventory/liabilities
2 of 6
Trade receivable days=
tr/credit sales x 365
3 of 6
Trade payable days=
tp/credit purchases x 365
4 of 6
Inventory turnover=
avg inventory turnover/cos x 365
5 of 6
Avg inventory=
opening inv + closing/2
6 of 6

Other cards in this set

Card 2

Front

Liquid capital ratio=

Back

assets-inventory/liabilities

Card 3

Front

Trade receivable days=

Back

Preview of the front of card 3

Card 4

Front

Trade payable days=

Back

Preview of the front of card 4

Card 5

Front

Inventory turnover=

Back

Preview of the front of card 5
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