Which of the ratios is incorrect

Assignment Help Financial Management

Reference no: EM13911160

Which of the following ratios is incorrect?

Current ratio= current assets/ current liabilities

Quick ratio= (current assets-inventory) /current liabilities

Inventory turnover= (cost of goods sold)/ inventory

Days sales outstanding= 365/ accounts payable turnover

Reference no: EM13911160

Questions Cloud

What is dividend yield and what is the intrinsic value : ABC Corp. has just paid a dividend of $0.26. ABC has an annual required return of 12%. If dividends are annual and expected to be constant, what is the intrinsic value (fair price) of ABC stock? What is ABC's dividend yield? A different analyst think..

What are some of the challenges and potential : What are some of the challenges and potential problems of implementing a CRM system and CRM mindset in a firm employees? How might you overcome these?

What is the intrinsic value of stock : ABC Corp. has just paid a quarterly dividend of $0.28. ABC's dividends will grow by 5% for the next 4 quarters, and then grow by 0.6% thereafter. ABC has a quarterly required return of 4%. What is the intrinsic value of ABC stock?

Singh and smythe is an architectural firm that provides : Singh and Smythe is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period.

Which of the ratios is incorrect : Which of the following ratios is incorrect?

Discuss risk methodologies used in capital budgeting : Apix is considering coffee packaging as an additional diversification to its product line. Here’s information regarding the coffee packaging project: Was there further financial information that you required that was not provided to you? What financi..

Open-end mutual fund and a closed-end fund : What is the difference between an open-end mutual fund and a closed-end fund? What is the difference between an open-end mutual fund and a unit investment trust? (17-3)

What is the firms total corporate value in millions : Mooradian Corporation’s free cash flow during the just-ended year (t = 0) was $150 million, and its FCF is expected to grow at a constant rate of 5.0% in the future. If the weighted average cost of capital is 12.5%, what is the firm’s total corporate..

What is the projects profitability index : A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the projects profitability index? What is the projects payback? What is the projects discounted payback?

User Account

All Pages