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6 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Quick Ratio
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(Cash + Accounts Receivable) / (Total Current Liabilities)
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Shows the amount of liquid
assets (i.e., cash or assets that can be quickly converted to cash) on hand to cover current debts |
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Current Ratio
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(Total Current Assets) / (Total Current Liabilities)
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Similar to the Quick Ratio,
but broader, since it includes less liquid assets that may be used to cover current debts |
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Cash Ratio; Liquidity Ratio
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(Cash) / (Total Current Liabilities)
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Shows the cash on hand to
cover current liabilities |
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Debt to Equity
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Debt/Equity
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Shows the amount of
shareholders’ equity available to cover debts |
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Current Liabilities to Inventory
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(Total Current Liabilities) / Inventory
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Shows how much a
company can rely on unsold inventory to cover debts |
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Total Liabilities to Net Worth
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Total Liabilities / Net Worth
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Similar to the debt to equity
ratio, but broader since it includes all the company’s liabilities, not just debt |
