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7 Cards in this Set
- Front
- Back
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Current Ratio
(liquidity) |
Monetary Assets
--------------- Current Liabilities |
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Living Expenses Ratio
(liquidity) |
Monetary Assets
--------------- Monthly Expenses* *Monthly Expenses = (Annual living expenses + Annual Debt payments)/12 All expenses. Current and Long Term. |
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Debt Ratio
(debt) |
Total Debt
---------- Total Assets |
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Long Term Debt Coverage Ratio
(debt) |
Total Income Available for Living Expenses
----------------------------- Total Long Term Debt Payments |
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Savings Ratio
|
Income Available for Savings and Investment
------------------------ Income Available for Living Expenses |
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How do you calculate
Real Return RATE? |
Nominal Rate - Inflation Rate
------------------------ Inflation Factor Ex: 10% nominal and 3% inflation would be 10 - 7 ----- 1.03 |
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How do you calculate
Real Return FACTOR? |
Nominal Factor
----------- Inflation Factor Ex: 1.10 real, 1.03 inflation 1.10 ---- 1.03 |
