Cash and profitability ratio calculations—blank
Cash and profitability ratio calculations—blank

The following Practice Management precedent provides comprehensive and up to date legal information covering:

  • Cash and profitability ratio calculations—blank

Date of calculations: [insert date of calculations]

Current ratio

FormulaCalculationResultResult from previous month/year% movement
Current assets ÷ Current liabilities

If the ratio falls below 1.0, the firm has insufficient current assets to pay off its current liabilities when they fall due. Compare this result to the previous current ratio result. If the current ratio is deteriorating and falling close to 1.0, calculate the other ratios to help better understand why the firm is running out of money.

WIP days

FormulaCalculationResultResult from previous

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