RATIO ANALYSIS

Test of short-term debt paying ability

• Current ratio

• Cash Flow ratio

• Current Asset Turnover

• Acid test

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

• Cash ratio

• Working Capital ratio

• Current ratio

• Acid Test ratio

Which of the following is not a quick asset?

• Cash

• Inventories

• Marketable Securities

• Net receivables

Working Capital

• Total Assets / Total Liabilities

• Total Liabilities / Total Assets

• Current Assets less Current Liabilities

• Current Assets less Capital

Measures the liquidity of current assets

• Cash to Current Assets ratio

• Cash Flow ratio

• Acid Test

• Cash ratio

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

• Cash Conversion Cycle

• Payables Deferral Period

• Receivables Collection period

• Inventory Conversion period

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

• Cash Flow ratio

• Cash ratio

• Acid Test

• Banker's ratio

RECEIVABLE TURNOVER

• Average Age of Inventory

• COGs Turnover

• Average Daily Cost of Goods sold

• Inventory Turnover

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

• Short term debt

• Capital

• Long term debt

• Interest