Financial Equations Flashcards
1
Q
Solvency Ratio
A
Deprectiation + NI / Total liabilities
NI is profit before tax (1-.39)
2
Q
Current Ratio
A
Current Assets / Current Liabilities
3
Q
Gross Profit Margin
A
Gross Profit / Sales x 100
4
Q
Net Profit Margin
A
NI / Sales x 100
5
Q
Operating Profit Margin
A
Operating Profit / Sales x 100
6
Q
Return On Assets
A
NI / Total Assets
7
Q
Debt to Equity
A
total liabilities / shareholder equity
8
Q
Debt to Assets
A
total liabilities / total assets
lower is better > less than 1 is good
9
Q
Sales to Current Assets
A
sales / current assets
10
Q
What are the 9 main financial ratios?
A
SC GNO R DDS
Solvency Ratio
Current Ratio
Gross Profit Margin
Net Profit Margin
Operating Profit Margin
Return On Assets
Debt to Equity
Debt to Assets
Sales to Current Assets
