Calculations Flashcards

1
Q

Calculate: Working Capital

A

Current Assets - Current Liabilities

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2
Q

Calc: Current Ratio

A

Current Assets / Current Liabilities

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3
Q

Calc: Quick Ratio

A

Cash+Marketable Securities+Accounts Receivable
/
Current Liabilities

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4
Q

Calc: Debt to Equity Ratio

A

Total Liabilities / Total Shareholder Equity

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5
Q

Long Term Debt Ratio

A

Long Term Debt
/
Long Term Debt + Shareholder Equity

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6
Q

Calc: Gross Margin

A

Net Sales - Cost of Goods Sold (COGS)

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7
Q

Calc: Gross Margin Ratio

A

Gross Margin / Net Sales

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8
Q

Calc: Earnings per Share

A

Net Income / Total Number of Shares Outstanding ($value)

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9
Q

Calc: Return on Sales

A

Net Income / Net Sales

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10
Q

Calc: Return on Assets

A

Net Income / Total Assets

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11
Q

Calc: Return on Equity

A

Net Income / Total Shareholder Equity

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12
Q

Calc: Turnover Ratio

A

Cost of Goods Sold / Average Inventory = Turn over

365/turnover = days inventory stays in the company

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13
Q

Calc: Collection Period

A

Accounts Receivable / Credit Sales

X

number of days in the period

Time it takes to collect cash

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