Choose from the drop-down list ratio being described. Shows the cash left over from operating cash flows after investing some cash to maintain current productive capacity and after paying current a. dividends b. EBIT is the numerator. C. Measures liquidity and is a dollar value. d. Net credit sales is the numerator e The lower this ratio, the greater the risk for carrying obsolete merchandise. f. Receivables and inventory turnover ratios can be used in conjunction with this ratio to assess liquidity. & Calculated using the following formula Days In Inventory Current Ratio Receivables Turnover Times Interest Earned Average Collection Period Inventory Turnover Working Capital Free Cash Flow Debt To Total Assets Ratio 365 (Inventory Turnover) h. When this ratio is high, a company has a high level of debt and may be unable to pay its maturing obligations i. A low ratio may indicate that a company's credit terms are too tight