Chapters 9 & 10 Flashcards
1
Q
Gross Profit Margin
A
Gross Profit / Sales
2
Q
Operating Profit Margin
A
Operating Profit / Sales
3
Q
Net Profit Margin
A
Net Profit / Sales
4
Q
ROA
A
Net Profit / Total Assets
5
Q
ROE
A
Net Profit / Shareholders’ Equity
6
Q
Current Ratio
A
Current Assets / Current Liabilities
7
Q
Quick Ratio
A
Current Assets - Inventory / Current Liabilities
8
Q
Debt-to-Equity Ratio
A
Total Liabilities / Shareholders’ Equity
9
Q
Time-Interest-Earned Ratio
A
Operating Profit / Annual Interest Charges
10
Q
Inventory Turns
A
COGS / Avg. Inventory
11
Q
Days in Inventory aka Days on Hand
A
Average Inventory / COGS/days
12
Q
Fixed Asset Turnover
A
Sales / Fixed Assets
13
Q
Days Sales Outstanding
A
Ending AR / (Sales / days)
14
Q
Days Payables Outstanding
A
Ending AP / (COGS / days)
15
Q
Cash to Cash Cycle
A
Days Inventory + Days Sales - Days Payable
