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4 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Current ratio |
Current assets / current liabilities |
Higher current ratio indicates a greater degree of liquidity |
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Quick ratio |
(Current assets - inventory) / current liabilities |
If inventory is liquid, current ratio better |
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Inventory turnover |
COGS / inventory (/365) |
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Average collection period |
AR / avg sales per day |
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