Accounting Final Formulas Flashcards
0
Q
Debt to total assets ratio
A
Total liabilities / total assets
1
Q
Working capital
A
Current assets - current liabilities
2
Q
Current ratio
A
Current assets / current liabilities
3
Q
Earnings per share
A
Average common share out
4
Q
Inventory turnover ratio
A
Cost of goods sold / average inventory
5
Q
Price earnings ratio
A
Stock price per share / earnings per share
6
Q
Days in inventory
A
365 / inventory turnover ratio
7
Q
Gross profit rate
A
Gross profit / net sales
8
Q
Recievable turnover ratio
A
Net credit sales / average net recievables
9
Q
Profit margin ratio
A
Net income / net sales
10
Q
Cash debt coverage ratio
A
Average total liabilities
11
Q
Average collection period
A
365/ recievables turnover ratio
