RATIO ANALYSIS

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

• Cash

• Marketable Securities

• Net receivables

• Inventories

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

• Short term debt

• Operating expenses

• Long term debt

• Dividends

RECEIVABLE TURNOVER

• @@\frac{\text{Net Credit Sales}}{\text{Average Receivables}}@@

• @@\frac{\text{Total Sales}}{\text{Net Receivables}}@@

• @@\frac{\text{Net Credit Sales}}{\text{Total Receivables}}@@

• @@\frac{\text{Average Receivables}}{\text{Net Credit Sales}}@@

Working Capital

• Current Assets less Current Liabilities

• Total Assets minus Total Liabilities

• Current Assets plus Current Liabilities

• Net Income divided by Total Assets

What does @@\frac{\text{COGs}}{\text{Average Merchandise Inventory}}@@ represent?

• Average Age of Inventory

• COGs Turnover

• Average Daily Cost of Goods sold

• Inventory Turnover

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

• Acid Test ratio

• Current Ratio

• Debt to Equity Ratio

• Gross Profit Margin

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

• Current ratio

• Quick ratio

• Cash ratio

• Debt to equity ratio

Test of short-term debt paying ability

• Current ratio

• Debt-to-equity ratio

• Quick ratio

• Cash ratio

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

• Receivables Collection period

• Cash Conversion Cycle

• Accounts Receivable Turnover

• Sales Collection Duration

Measures the liquidity of current assets

• Cash to Current Assets ratio

• Current Ratio

• Quick Ratio

• Debt to Equity Ratio