acct ratios

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5 Terms

1
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current ratio

current assets/current liabilities

2
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working capital

current assets - current liabilities

3
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acid test/quick ratio

(cash + short term investments + accounts receivable) / current liabilities

4
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debt-to-equity ratio

total liabilities/ total SHE

5
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times interest earned

(net income + interest expense + income taxes) / interest expense