FAR-F2-M7-Ratio Analysis Flashcards
What is the working capital formula?
Working capital = current assets - current liabilities
What is the current ratio formula?
Current ratio = (current assets / current liabilities)
What is the quick ratio formula?
Quick ratio = (cash and cash equivalents + short term marketable securities + Net AR) / Current liabilities
What is the AR turnover formula?
AR Turnover rate = Net Sales / Average net AR
What is the Inventory Turnover formula?
Inventory turnover = COGS / Average Inventory
What is the Days Sales in AR formula?
Days Sales in AR = (Net Ending AR) / (net sales / 365)
What is the Days in Inventory Formula?
Days in Inventory = (Ending Inventory) / (COGS / 365)
What is the AP Turnover Formula?
AP Turnover = COGS / Average Accounts Payable
What is Days Payable Outstanding Formula?
Days Payable outstanding = (Ending AP) / (COGS/365)
What is cash conversion cycle formula?
Cash conversion cycle = Days sales in AR + Days in Inventory - Days of Payables Oustanding
What is the asset turnover formula?
Asset turnover = Net Sales / Average Total Assets
What is the working capital turnover formula?
working capital turnover = net sales / average working capital
What is net profit margin formula?
Net profit margin = Net Income / Net Sales
What is return of assets formula?
Return of Assets = Net Income / Average Total assets
What is Dupont Return on Assets Formula?
Dupont ROA = Profit Margin * Asset Turnover
What is return on equity formula?
Return on Equity = Net Income / Average total equity
What is return on sales formula?
Return on Sales = (Income before interest income, interest expense and taxes) / Net Sales
What is the gross profit margin formula?
Gross profit margin = (Net sales - COGS) / Net Sales
What is the operating cash flow ratio?
Operating cash flow ratio = Cash flow from operations / current liabilities
What is debt to equity formula?
Debt to equity ratio = total liabilities / total equity
What is the total debt ratio formula?
Total debt ratio = total liabilities / total assets
What is the equity multiplier formula?
Equity multiplier = total assets / total equity
What is the times interest earned formula?
Times interest earned = earnings before interest and taxes / interest expense
What is the earnings per share formula?
EPS = (Net income - preferred dividends) / weighted average number of common shares outstanding
What is the price earnings ratio formula?
Price earnings ratio = price per share / basic earnings per share
What is the dividend payout ratio formula?
Dividend payout ratio = cash dividends / net income
Cash dividends = dividends per share * shares outstanding
