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Financial Terms related to Ratio
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Findthousandsoffinancialtermsatwww.
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com
Financial Terms related to Ratio
This document is part of the valuable contents
available at www.
ftpall.
com, a free online
glossary with more than five thousand financial
and business terms.
This document can be copied and distributed freely
respecting its original format.
It is forbidden its
transcription, translation or change on its format
without authorization of its author or editor.
RATIO
Acid test ratio
• Also called the quick ratio, the ratio of current assets minus inventories, accruals,
and prepaid items to current liabilities.
• Is another term to describe the Quick Asset Ratio.
It measures an organization s
liquidity by adjusting current assets by subtracting inventories and then dividing by
the current liabilities.
• See Quick Ratio.
Activity ratios
• Used to measure the effectiveness of managing accounts receivable, inventory,
accounts payable, fixed assets, and total assets.
Appraisal ratio
• The signal-to-noise r
Less