Cash flow = Net income + Depreciation + Depletion + Amortization Net worth = Common stockholders' equity + Deferred income taxes Cash = Cash + Marketable securities Quick assets
= Cash + Accounts receivable Working capital = Current assets - Current Liabilities Fund expenditures for operations = Operating expenses - Depreciation - Depletion - Amortization Defensive assets = Quick assets
However, it's what's up front that counts; that is, you can't judge this ratio unless you also have the quick ratio, for there may be enough quick assets
so that you needn't rely on inventory at all.
For the ratios of current assets to current liabilities and of quick assets
to current liabilities, Forecast Model No.
Some analysts define the quick assets
as current assets minus inventory.