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Accounts Receivable Turnover
A financial metric that measures how effectively a company collects its receivables, calculated as net credit sales divided by the average accounts receivable.
Working Capital
A measure of a company's liquidity, operational efficiency, and short-term financial health, calculated as current assets minus current liabilities.
Current Ratio
A financial indicator used to assess whether a company can handle its obligations in the short term, calculated by the ratio of current assets to current liabilities.
Acid-Test Ratio
A liquidity metric that measures a company's ability to pay off its current liabilities with its quick assets without relying on inventory sales.
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