Excercise Flashcards
Inventory turnover ratios
Inventory turnover = Cost of goods sold/ average inventory
cogs = cost of sales
Average no. Days Inventory in stock
= 365/ inventory turnover
Receivales Turnover
= sales/ average trade receivables
sales = net sales
average no. days receivables outstanding
= 365/ receivables turnover
Account payables turnover
= purchases/ average account payable
- purchases = cost of sales * 🔼inventory
Average no. Days payables outstanding
= 365/ payables turnover
Fixed assets turnover
= Sales/ average fixed assets
Average fixed assets ~ PP&E
Total asset turnover
= sales/ average total assets
Cash-cycle
Average no. Days inventory in stock
+ days of receivables outstanding
= length of operating cycle
- payables outstanding
= length of cash cycle
Current ratio
= current assets/ current liabilities
Quick ratio
= (cash+ marketable securitues + account receivable)/ current liabilities
Cash ratio
= (cash + marketable securities) / current liabilities
CashFlow from operations ratio
= cashflow from operations/ current liabilities
Short-term (operating) activity ratios
- inventory turnover ratios
- receivables turnover ratios
- Accounts payable turnover ratios
Long-term (investment) activity ratios
- fixed asset turnover ratio
- total asset turnover ratio
