FINANCIAL RATIO Flashcards

1
Q

RECITE THE 10 FINANCIAL RATIOS

A
  1. CURRENT RATIO
  2. QUICK RATIO
  3. DEBT TO EQUITY RATIO
  4. INTEREST COVERAGE RATIO
  5. GROSS PROFIT MARGIN
  6. NET PROFIT MARGIN
  7. RETURN ON ASSETS
  8. RETURN ON EQUITY
  9. INVENTORY TURNOVER RATIO
  10. ACCOUNTS RECEIVABLE TURNOVER
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2
Q

CURRENT RATIO

A

CURRENT ASSETS
————————
CURRENT LIABILITIES

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3
Q

QUICK RATIO

A

CURRENT ASSETS - INVENTORY
——————————————-
CURRENT LIABILITIES

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4
Q

DEBT TO EQUITY RATIO

A

TOTAL LIABILITIES
————————-
TOTAL EQUITY

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5
Q

INTEREST COVERAGE RATIO

A

EBIT
————
INTEREST EXPENSE

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6
Q

GROSS PROFIT MARGIN

A

SALES - COGS
——————-
SALES

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7
Q

NET PROFIT MARGIN

A

NET INCOME
——————
SALES

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8
Q

RETURN ON ASSETS

A

NET INCOME
——————
TOTAL ASSETS

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9
Q

RETURN ON EQUITY

A

NET INCOME
——————-
TOTAL EQUITY

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10
Q

INVENTORY TURN OVER

A

COGS
————————
AVERAGE INVENTORY

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11
Q

ACCOUNTS RECEIVABLE TURN OVER

A

NET CREDIT SALES
——————————
AVERAGE ACCOUNTS RECEIVABLE

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12
Q

EBIT

A

net income - interest expense

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13
Q

EBITDA

A

amortization - depreciation

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