F2 Ratios

Question 1

Gross Profit Margin

Answer 1

(Sales (Net) - COGS)
/Sales (Net)

Question 2

Profit Margin

Answer 2

Net Income/Sales(Net)

Question 3

Return On Sale

Answer 3

Income before interest income, interest expense, and taxes/Sales(Net)

Question 4

Return on Asset (ARO)

Answer 4

Net income/average total assets

Question 5

Return on equity

Answer 5

Net income/average total equity

Question 6

DuPont return on assets

Answer 6

Net income/Sales (Net)
x
Sales(Net)/Average total assets.

Question 7

Operating cash flow ratio

Answer 7

cash flow form operations/Current liabilities

Question 8

AR turnover

Answer 8

Sales(net)/Average accounts receivable(net)

Question 9

Day Sales in Accounts Receivable

Answer 9

Ending accounts receivable(net)
/
Sales(net)/365

Question 10

Inventory Turnover

Answer 10

COGS/Average Inventory

Question 11

days of payable outstanding

Answer 11

Ending AP
/
COGS/365

Question 11

Days in inventory

Answer 11

Ending Inventory
/
COGS/365

Question 12

AP turnover ratio

Answer 12

COGS /average accounts payable

Question 13

Debt to equity

Answer 13

Total Liabilities/Total Equity

Question 14

Casg Conversion Cycle

Answer 14

Days sales in AR+Days in inventory-Days of payables outstanding

Question 15

Total Debt Ratio

Answer 15

Total Liabilities/ Total Assets

Question 16

Equity Multiplier

Answer 16

Total Assets/Total Equity

Question 17

Time interest earned

Answer 17

Income before interest expense and taxes/Interest expense

Question 18

Dividends payout

Answer 18

Cash dividends/Net income

Question 19

Price to earnings ratio

Answer 19

Price per share/Basic earnings per share

Question 20

Asset turnover

Answer 20

Sales (net)/average total assets