Chapter17 15 Flashcards
Current ratio
Current assets/current liabilities
Working capital
Current assets-current liabilities
Acid test
Cash+short term investments+current receivables /current liabilities
Accounts receivable turnover
Net sales/average accounts receivable
Inventory turnover
Cost of goods sold/average inventory
Days sales uncollected
Accounts receivable net/net sales *365
Days sales on inventory
Ending inventory /cost of goods sold *365
Total asset turnover
Net sales/average total assets
Debt ratio
Total liabilities/total assets
Equity ratio
Total equity/total assets
Debt to equity
Total liabilities/total equity
Times interest earned
Income before interest expense and taxes/interest expense
Profit margin ratio
Net income/net sales
Gross margin ratio
Net sales-cost of goods sold/net sales
Return on total assets
Net income/average total assets
