Formula
Liabilities + Owner's Equity
What is Assets?
The division of current assets by current liabilities.
What is Current Ratio?
A company’s long-run financial viability and its ability to cover long-term obligations
What is the definition of solvency?
The total amount of money spent for sales.
What is Cost of Goods Sold?
Prof Rony Lim's email
What is rbtlim@ntu.edu.sg
Total Liabilities/Shareholders' equity
What is the formula of debt to equity ratio?
This is the difference between total assets and total liabilities.
What is Owner's Equity?
Reveals profitability generated from owner’s equity
What does return on equity (ROE) reveal?
Money that a company owes to its suppliers for goods or services
What is Accounts Payable?
Prof Rony's colleges
What is the London School of Economics & Political Science, and the University of Oxford?
Beginning Inventory + Net Purchases - Ending Inventory
What is the formula for COGS?
A ratio that is also known as acid test.
What is Quick Ratio?
Measures a company's ability to pay interest on its outstanding debt
What does Interest coverage ratio measure?
All debts that a company has yet to pay
What is liability?
Prof Rony
Who is the best FA prof in NTU?
(Net Income + Interest Exp + Tax Exp)/Interest Exp
What is Times interest earned ratio?
The depreciation of an intangible asset (e.g. license, patent) over a fixed period of time.
What is Amortisation?
These are payments to the shareholders of a company.
What are Dividends?
Group 8
Who is the best group in this class?
Net Credit Sales/Average AR
What is the Average AR Turnover Ratio?
The sum of ending inventory and COGS, deducting beginning inventory.
What is total supplier purchases?
the length of time it takes to sell inventory, collect receivables and the length of time the company is afforded to pay its bills
What is the cash conversion cycle?
Revenue, expenses and income summary
What is temporary accounts?
6
What is the number of research articles that Prof Rony Lim has published based on his LinkedIn?