FINANCIAL RATIO Flashcards
1
Q
RECITE THE 10 FINANCIAL RATIOS
A
- CURRENT RATIO
- QUICK RATIO
- DEBT TO EQUITY RATIO
- INTEREST COVERAGE RATIO
- GROSS PROFIT MARGIN
- NET PROFIT MARGIN
- RETURN ON ASSETS
- RETURN ON EQUITY
- INVENTORY TURNOVER RATIO
- ACCOUNTS RECEIVABLE TURNOVER
2
Q
CURRENT RATIO
A
CURRENT ASSETS
————————
CURRENT LIABILITIES
3
Q
QUICK RATIO
A
CURRENT ASSETS - INVENTORY
——————————————-
CURRENT LIABILITIES
4
Q
DEBT TO EQUITY RATIO
A
TOTAL LIABILITIES
————————-
TOTAL EQUITY
5
Q
INTEREST COVERAGE RATIO
A
EBIT
————
INTEREST EXPENSE
6
Q
GROSS PROFIT MARGIN
A
SALES - COGS
——————-
SALES
7
Q
NET PROFIT MARGIN
A
NET INCOME
——————
SALES
8
Q
RETURN ON ASSETS
A
NET INCOME
——————
TOTAL ASSETS
9
Q
RETURN ON EQUITY
A
NET INCOME
——————-
TOTAL EQUITY
10
Q
INVENTORY TURN OVER
A
COGS
————————
AVERAGE INVENTORY
11
Q
ACCOUNTS RECEIVABLE TURN OVER
A
NET CREDIT SALES
——————————
AVERAGE ACCOUNTS RECEIVABLE
12
Q
EBIT
A
net income - interest expense
13
Q
EBITDA
A
amortization - depreciation