Final Formulas Flashcards
1
Q
Gross Profit Ratio =
A
Gross Profit / Sales
2
Q
Working Capital =
A
Current Assets - Current Liabilities
3
Q
Current Ratio =
A
CA / CL
4
Q
Avg # of days in A/R =
A
365 / Inventory Turnover Ratio
5
Q
Inventory Turnover Ratio =
A
COGS / Avg. Inventory
6
Q
Return on Assets (ROA) =
A
NI / Avg. Total Assets
7
Q
Asset Turnover =
A
Sales / Avg. total Assets
8
Q
Profit Margin =
A
NI / Net Sales
9
Q
When to recognize impairment??
A
when Book Value > Future Cash Flows
10
Q
Impairment Loss =
A
Fair Value- Book value
11
Q
A/R Turnover Ratio =
A
Net Credit Sales / Avg Net A/R
12
Q
Avg. Collection Period =
A
365 / A/R Turnover Ratio
13
Q
Debt to Equity =
A
Total Liabilities / Stockholders Equity
