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5 Cards in this Set
- Front
- Back
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Net Current Asset Ratio |
Current assets ÷ current liabilities |
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Liquid Capital Ratio |
Current assets - inventory ÷ current liabilities |
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Trade receivables collection period |
Average trade receivables* ÷ credit sales
*closing trade receivables may be used × 365 |
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Trade payables collection period |
Average trade payables* ÷ credit purchases × 365 |
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Gearing |
Creditors: amounts falling due after more than one year × 100 ÷ Capital and reserves
For sole trader: non current assets × 100 ÷ capital Preferred method: Non current liabilities ÷ equity + non current liabilities |
