current liabilities to inventory ratio
Definition
Indicates reliance on the available inventory for payment of debt. Expressed usually as a percentage, it is one of the measures of the solvency of a firm. Formula: Current liabilities x 100 ÷ Available inventory.
current liabilities to inventory ratio is in the Accounting & Auditing, Banking, Commerce & Finance and Inventory Control & Storage subjects.
current liabilities to inventory ratio appears in the definition of the following term: solvency ratios
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