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Gmc inventory turnover12/29/2023 Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation. 1423 OLD COUNTRY ROAD RIVERHEAD NY 11901-2026 US. It indicates what proportion of equity and debt the company is using to finance its assets. Total Debt/Equity is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. In the event that short-term obligations need to be paid off immediately, there are situations in which the current ratio would overestimate a company's short-term financial strength. Great for commutes or road trips, the GMC Terrain is a compact model with two rows of seating and accommodations for five people. Inventory is excluded because some companies have difficulty turning their inventory into cash. Let’s use the cost on the screen as our end of year value and calculate our inventory turns for the year in question. The quick ratio is more conservative than the current ratio, a more well-known liquidity measure, because it excludes inventory from current assets. We then add up the inventory cost of all of our items to get the total cost of our inventory. The higher the current ratio, the more capable the company is of paying its obligations. Current Ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables).
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