Examlex
What are the five basic processes that all managers use?
Liquidity Ratio
A financial metric used to determine a company's ability to pay off its short-term debts with its current assets.
Current Ratio
Current assets/current liabilities. Measures the ability of the firm to pay off its current liabilities by liquidating current assets.
Acid Test
A stringent test that measures the liquidity of a company by calculating its quick assets (excluding inventory) against its current liabilities.
ROA
Return on Assets represents a financial metric that measures a company's profitability in relation to its overall assets.
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