Calculations Flashcards
Calculate: Working Capital
Current Assets - Current Liabilities
Calc: Current Ratio
Current Assets / Current Liabilities
Calc: Quick Ratio
Cash+Marketable Securities+Accounts Receivable
/
Current Liabilities
Calc: Debt to Equity Ratio
Total Liabilities / Total Shareholder Equity
Long Term Debt Ratio
Long Term Debt
/
Long Term Debt + Shareholder Equity
Calc: Gross Margin
Net Sales - Cost of Goods Sold (COGS)
Calc: Gross Margin Ratio
Gross Margin / Net Sales
Calc: Earnings per Share
Net Income / Total Number of Shares Outstanding ($value)
Calc: Return on Sales
Net Income / Net Sales
Calc: Return on Assets
Net Income / Total Assets
Calc: Return on Equity
Net Income / Total Shareholder Equity
Calc: Turnover Ratio
Cost of Goods Sold / Average Inventory = Turn over
365/turnover = days inventory stays in the company
Calc: Collection Period
Accounts Receivable / Credit Sales
X
number of days in the period
Time it takes to collect cash