Chapters 9 & 10 Flashcards
Gross Profit Margin
Gross Profit / Sales
Operating Profit Margin
Operating Profit / Sales
Net Profit Margin
Net Profit / Sales
ROA
Net Profit / Total Assets
ROE
Net Profit / Shareholders’ Equity
Current Ratio
Current Assets / Current Liabilities
Quick Ratio
Current Assets - Inventory / Current Liabilities
Debt-to-Equity Ratio
Total Liabilities / Shareholders’ Equity
Time-Interest-Earned Ratio
Operating Profit / Annual Interest Charges
Inventory Turns
COGS / Avg. Inventory
Days in Inventory aka Days on Hand
Average Inventory / COGS/days
Fixed Asset Turnover
Sales / Fixed Assets
Days Sales Outstanding
Ending AR / (Sales / days)
Days Payables Outstanding
Ending AP / (COGS / days)
Cash to Cash Cycle
Days Inventory + Days Sales - Days Payable
Total Landed Costs
Purchase Price + sum(Transportation + Other Acquisition Costs)
TCO
Acquisition Costs + sum(Ownership Costs + End of Life Costs)
Mechanics of Cost Modeling
Map the Process
ID Cost and Performance Drivers
Evaluate Alternatives
Evaluate Tradeoffs
Target Costing
Evaluate Product Characteristics
Set Target Sales Price
Calculate Target Cost
Develop Cost Breakdown
Execute Target Costing Process (To Reduce Costs)
Roll Out Design
