Chapter 6 Flashcards
What is the accounts receivable turnover ratio?
Net credit sales / Average accounts receivable
What is the average accounts receivable?
Beginning accounts receivable + Ending accounts receivable / 2
What is the total asset turnover ratio?
Net sales / Average total assets
What is the inventory turnover ratio?
Cost of goods sold / Average inventory
What is the Days’ sales in inventory ratio?
(Ending inventory / Cost of good sold) * 365
What is the current ratio?
Current assets / Current liabilities
What is the quick ratio?
Cash + Short-term investments + accounts receivable / Current liabilities
What is the cash ratio?
Cash and cash equivalents / Current liabilities
What is the debt-to-assets ratio?
Current liabilities + Long-term liabilities / Total assets
What is the debt-to-equity ratio?
Total liabilities / Total stockholder equity
What is the times interest earned ratio?
EBIT / Interest expense
What is the earnings per share ratio?
Net income - Preferred dividends / Weighted average common shares outsanding
What is the Price/Earnings ratio?
Market value per share / Earnings per share
What is the Book value per share ratio?
Total equity - Preferred equity / Total shares outstanding
What is the profit margin?
Net income / Net sales
