RATIO ANALYSIS

Front

Test of short-term debt paying ability

Back

Current ratio

Front

measures the number of times that the current liabilities could be paid with the available current assets

Back

Acid Test ratio

Front

Which of the following is not a quick asset? Cash, Marketable Securities, Net receivables

Back

Inventories

Front

Working Capital

Back

Current Assets less Current Liabilities

Front

Measures the liquidity of current assets

Back

Cash to Current Assets ratio

Front

Average length of time required to convert firm's receivables into cash - to collect cash following a sale.

Back

Receivables Collection period

Front

It tests short-term liquidity without relying on inventory and receivables.

Back

Cash ratio

Front

RECEIVABLE TURNOVER

Back

Front

Back

Inventory Turnover

Front

Solvency measures the firm's financial ability to pay its _____

Back

Long term debt