Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/5

Click to flip

5 Cards in this Set

  • Front
  • Back
CURRENT RATIO
Current Ratio =
Current Assets/ Current Liabs

An increase in current ratio is a favorable trend & means the company is more liquid.
QUICK RATIO
Quick Ratio =
(Current Assets-Inventory)/ Current Liabilities

An increase in quick ratio is a favorable trend meaning company became more liquid.
CASH RATIO
Cash Ratio = Cash/Current Liab

Increase in ratio = greater liquidity
TOTAL DEBT RATIO
Total Debt Ratio =
Total Liab/Total Assets
(Current Liab+LT Debt)/ T/A

A decrease in debt ratio is a favorable trend.
DEBT EQUITY RATIO
Debt Equity Ratio =
Debt/Equity

Debt as a lower %age of equity is a positive trend...
less leverage.