F2-M8 Ratio and Variance Analysis Flashcards
1
Q
COGS Formula
A
Goods available for sale minus ending inventory
2
Q
Inventory Turnover
A
COGS/Average Inventory
3
Q
Net Profit Margin
A
Net income/Net sales
4
Q
What happens when inventory is sold at the same amount its bought for?
A
It means it was sold at cost so net profit margin has to come down.
5
Q
Return on assets
A
NI/ Average total assets
6
Q
DuPont
A
NI/ Average total assets
7
Q
Return on equity
A
NI-Preferred DIV/Average toal equity
8
Q
Quick Ratio
A
Measure of liquidity therefore exclude prepaid
9
Q
Inventory Turnover
A
COGS/Average inventory
10
Q
Days in Inventory
A
Ending Inventory/(COGS/365)
11
Q
Total debt Ratio
A
Total liabilities/ Total assets
12
Q
Times Interest Earned
A
EBIT/Interest expense
13
Q
A
