Category: Liquidity Ratios

Accounts Receivable Turnover

Accounts receivable turnover is a liquidity ratio that describes how efficient a company is at collecting accounts receivables from clients.

Working Capital

Working capital is a liquidity measure that describes how much more current assets a company owns compared to its current liabilities.

Quick Ratio (Acid Test)

The quick ratio is a liquidity ratio that shows to what extent a company can cover its current liabilities with very liquid assets.

Average Collection Period

Average collection period is a liquidity ratio that describes how long it takes a company to collect their accounts receivables.

Current Ratio

The current ratio is a liquidity ratio that shows the ratio of current assets to current liabilities.

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Liquidity Ratios

Days In Inventory

Days in Inventory is a measure for how many days inventory, on average, it takes a company to turn around its inventory.

Inventory Turnover

Inventory turnover is a liquidity ratio that shows how efficient a company is at converting its inventory into sales.