Accounting Ratios Flashcards
1
Q
What is Working Capital?
A
Current Assets - Current Liabilities
2
Q
What is Current Ratio?
A
Current Assets / Current Liabilities
3
Q
What is Quick Ratio?
A
Current Assets (Excluding Inventory and Prepaids) / Current Liabilities
4
Q
What is Inventory Turnover?
A
COGS / Average Inventory
5
Q
What is Days in Inventory?
A
365 / Inventory Turnover
6
Q
What is Accounts Receivable Turnover?
A
Sales / Average Accounts Receivable
7
Q
What is Days in Accounts Receivable?
A
365 / Accounts Receivable Turnover
8
Q
What is Debt Ratio?
A
Total Liabilities / Total Assets
9
Q
What is Debt to Equity Ratio?
A
Total Liabilities / Total Equity
10
Q
What is Return on Equity?
A
Net Income / Average Equity
11
Q
What is Return on Assets?
A
Net Income / Average Assets
12
Q
What is Gross Margin?
A
Gross Profit / Sales
13
Q
A
14
Q
A
15
Q
A
