Chapter 2 - Ratios Flashcards
1
Q
Net Profit Margin
A
Net Income/Net Sales
2
Q
Working Capital Turnover
A
Sales/Average Working Capital or
Net Sales/(Current Assets Y1- Current Liabilities Y1) Current Assets Y2- Current Liabilities Y2) /2
3
Q
Return on Equity
A
Net Income - Preferred Dividends/ Average Common Equity
4
Q
Days in inventory
A
Ending Inventory/ (COGS/365)
5
Q
Quick Ratio
A
(Cash+Cash Equivalents +Marketable Securities+Net AR)/ Current Liabilities
