C
—
Current Ratio

Liquidity cushion. CA ÷ CL.

Q
—
Quick Ratio

Cash realism. (CA − Inventory) ÷ CL.

$
—
Cash Ratio

Immediate coverage. Cash ÷ CL.

I
—
Inventory Turnover

Stock speed. COGS ÷ Inventory.

T
—
Receivables Turnover

AR velocity. Sales ÷ AR.

D
—
Inventory Days (DIO)

Days in stock. 365 ÷ Inventory Turn.

R
—
Receivables Days (DSO)

Collection speed. (AR ÷ Sales) × 365.

P
—
Payables Days (DPO)

Supplier terms. (AP ÷ COGS) × 365.

C
—
Cash Conversion Cycle

Cash tie-up in days. DIO + DSO − DPO.

W
—
Working Capital

Operating buffer. CA − CL (absolute).

%
—
Working Capital / Sales

Efficiency of WC. (CA − CL) ÷ Sales.

CA = Current Assets • CL = Current Liabilities • AR = Accounts Receivable • AP = Accounts Payable • DIO/DSO/DPO in days

References (OBU Harvard Style)

Arnold, G. (2019) Corporate Financial Management. 6th edn. Harlow: Pearson Education.
Atrill, P. and McLaney, E. (2023) Accounting and Finance for Non-Specialists. 12th edn. Harlow: Pearson.
Brealey, R.A., Myers, S.C. and Allen, F. (2016) Principles of Corporate Finance. 12th edn. New York: McGraw-Hill Education.
CRM Oxford (2017) ‘How does your construction business compare? Key industry financial metrics.’ Available at: link (Accessed 9 October 2025).
Drury, C. (2018) Management and Cost Accounting. 10th edn. Andover: Cengage.
EY (2024) Green Finance and the Built Environment. Available at: link (Accessed 9 October 2025).
Horngren, C.T., Sundem, G.L. and Elliott, J.A. (2021) Introduction to Financial Accounting. 12th edn. Harlow: Pearson.
Institute of Financial Accountants (IFA) (2024) ‘Professional standards and guidance.’ Available at: link (Accessed 9 October 2025).
International Accounting Standards Board (IASB) (2024) Conceptual Framework for Financial Reporting. London: IFRS Foundation.
KPMG (2022) Global Construction Outlook Report. Available at: link (Accessed 9 October 2025).
McKinsey & Company (2023) The Next Normal in Construction. Available at: link (Accessed 9 October 2025).
McLaney, E. and Atrill, P. (2022) Accounting and Finance: An Introduction. 11th edn. Harlow: Pearson.
OECD (2023) Financing Climate Transition in Infrastructure. Paris: OECD Publishing.
Ross, S.A., Westerfield, R.W. and Jordan, B.D. (2019) Fundamentals of Corporate Finance. 13th edn. New York: McGraw-Hill Education.
Watson, D. and Head, A. (2010) Corporate Finance: Principles and Practice. 5th edn. Harlow: Pearson Education.