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	<title>Sebastian Perrier &#187; profitability</title>
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	<description>Management - Sales - Marketing - Strategy</description>
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		<title>Financial Ratios</title>
		<link>http://blog.sebastianperrier.com/2009/10/financial-ratios/</link>
		<comments>http://blog.sebastianperrier.com/2009/10/financial-ratios/#comments</comments>
		<pubDate>Mon, 12 Oct 2009 11:23:43 +0000</pubDate>
		<dc:creator>Sebastian Perrier</dc:creator>
				<category><![CDATA[Finance]]></category>
		<category><![CDATA[acid test]]></category>
		<category><![CDATA[current ratio]]></category>
		<category><![CDATA[financial ratios]]></category>
		<category><![CDATA[liquidity]]></category>
		<category><![CDATA[profitability]]></category>
		<category><![CDATA[solvency]]></category>
		<category><![CDATA[workin capital]]></category>

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		<description><![CDATA[1. Liquidity: is the company capable of paying for its short-term financial needs?

Current ratio = current assets / current liabilities -&#62; (&#62;2)
Acid test = c. assets &#8211; inventories / c. liabilities -&#62; (&#62;1)
Days Receivables = average receivables btw BS1 AND BS2 / sales per day (sales/365) ; are you collecting what you sold?
Days Inventory = [...]]]></description>
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