Chapter 3 - Working with Financial Statements Flashcards
0
Q
Quick ratio
A
(Current assets - Inventory)/ Current liabilities
1
Q
Current ratio
A
Current assets/ Current liabilities
2
Q
Cash ratio
A
Cash/ Current liabilities
3
Q
Net working capital to total assets
A
Net working capital/ Total assets
4
Q
Interval measure
A
Current assets/ Average daily operating costs
5
Q
Inventory turnover
A
Costs of goods sold/ Inventory
6
Q
Days’ sales in inventory
A
365 days/ Inventory turnover
7
Q
Receivables turnover
A
Sales/ Accounts receivable
8
Q
Days’ sales in receivables
A
365 days/ Receivables turnover
9
Q
Net working capital turnover
A
Sales/ NWC
10
Q
Fixed asset turnover
A
Sales/ Net fixed assets
11
Q
Total asset turnover
A
Sales/ Total assets
12
Q
Total debt ratio
A
(Total assets - Total equity)/ Total assets
13
Q
Debt-equity ratio
A
Total debt/ Total equity
14
Q
Equity multiplier
A
Total assets/ Total equity
