August 2018
Beginner to intermediate
320 pages
6h 31m
English
Here is a handy guide to the main formulas found in the book.
Use the following formulas to evaluate revenues and output generated by a firm’s assets:
Inventory turnover days = 365/(cost of goods sold/average inventory)
Accounts receivable turnover days = 365/(credit sales/average accounts receivables)
Accounts payable turnover days = 365/(purchases/average accounts payable)
Use the following formulas to measure the adequacy of the firm’s cash resources to meet its near-term cash obligations:
Current ratio = current assets/current liabilities
Quick ratio = (cash + marketable securities + accounts receivable)/current liabilities
Cash ratio = (cash + marketable securities)/current ...
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