Term
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Definition
= Current Assets - Current Liabilities
-cash,A/R,inventory, -A/P,N/P,S/P, unearned revenue
prepaid expenses |
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Term
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Definition
=Current Assets/Current Liabilities
ideal 2:1 |
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Term
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Definition
=(Current Assets-Inventory-Prepaid)/Current Liabilities
ideal 1:1 |
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Term
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Definition
how many times you buy and sell
-better to have MORE turnover
=Cost of Goods Sold/Average Inventory = x times |
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Term
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Definition
=365/Inventory Turnover = x days
-want low --> don't keep on shelf |
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Term
| Accounts Receivable Turnover |
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Definition
| =Net Sales(Sales-Sales R&A-Discounts)/Average A/R |
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Term
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Definition
| =365/Accounts Receivable Turnover = x days |
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Term
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Definition
=Average Age of Inventory + Average Collect Period
= total # days |
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Term
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Definition
| =Gross Profit(Net sales-COGS)/Net Sales |
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Term
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Definition
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