Current Ratio

= 1.5

Quick Ratio/Acid Test Ratio

=1

Inventory Turnover Period

Inventory Turnover =

Inventory turnover Period =

Average number of days inventory are held for. Thats
only an approximation.
Higher period inventory is held for indicates,
1. Slowdown in trading
2. Build-up in inventory levels, suggesting excessive
investment in inventory

Account Receivable Days/Payment Period

365 Days

This is rough measure of the average receivables

payment period.

Account Payable Days/Payment Period

365 Days
It helps assess companys liquidity: in increased payable
days indicates to lack of long-term finance or poor
management of current assets.

Sales Revenue/Net Working Capital Ratio

365 Days
It shows the level of working capital supporting sales.
Working capital must be positively correlated with sales.