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12 results for “assets”

Formulae (12)

CR = \frac{\text{Current Assets}}{\text{Current Liabilities}}

Liquidity measure of short-term solvency.

ROA = \frac{\text{Net Income}}{\text{Total Assets}}\times 100

Profit generated per dollar of assets.

WC = \text{Current Assets} - \text{Current Liabilities}

Short-term financial health of a business.

Assets = Liabilities + Equity

The foundation of double-entry bookkeeping: everything a business owns is financed either by debt or by owners’ capital.

CR = \dfrac{Current\ Assets}{Current\ Liabilities}

A liquidity measure of whether a firm can cover its short-term obligations with short-term assets.

QR = \dfrac{Current\ Assets - Inventory}{Current\ Liabilities}

A stricter liquidity test that excludes inventory, which can be slow to convert to cash.

WC = Current\ Assets - Current\ Liabilities

The short-term capital available to run day-to-day operations.

ROA = \dfrac{Net\ Income}{Total\ Assets}

How efficiently a company turns its assets into profit.

D = \dfrac{2}{n}\times Book\ Value

An accelerated depreciation method charging more expense in an asset’s early years.

Assets = Liabilities + Equity

The fundamental balance-sheet identity.

QR = \frac{Current Assets - Inventory}{Current Liabilities}

Stringent liquidity measure excluding inventory.

BV = Cost - \text{Accumulated Depreciation}

Asset value on the balance sheet.