finman1 QUIZ#2 formula 2

finman1 QUIZ#2 formula 2 - Current Ratio Indicates a firm's...

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Current Ratio Indicates a firm’s liquidity, as measured by its liquid assets (current assets) relative to its liquid debt (short-term or current liabilities). Acid Test (Quick) Ratio Indicates a firm’s liquidity, as measured by its liquid assets, excluding inventories, relative to its current liabilities. Average Collection Period Indicates how rapidly a firm is collecting its credit, as measured by the average number of days it takes to collect its accounts receivable. Operating Efficiency Ratios Measure how efficiently the firm’s assets generate operating profits. Operating Income Return on Investment (OIROI) Indicates the effectiveness of management at generating operating profits on the firm’s assets, as measured by operating profits relative to the total assets. Operating Profit Margin Indicates management’s effectiveness in managing the firm’s income statement, as measured by operating profits relative to sales. Total Asset Turnover
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This note was uploaded on 06/26/2011 for the course ACCT 101 taught by Professor Gobaco during the Spring '11 term at De La Salle University.

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finman1 QUIZ#2 formula 2 - Current Ratio Indicates a firm's...

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