Financial Ratios Flashcards
1
Q
Current Ratio
A
Current Assets / Current Liabilities
2
Q
Quick Ratio
A
Current Assets - Inventories / Current Liabilities
3
Q
Working Capital
A
Current Assets - Current Liabilities
4
Q
Inventory Turnover
A
Cost of Goods Sold / Average Inventory
5
Q
Days to Sell Inventory
A
365 / Inventory Turnover
6
Q
Acct’s Receivable Turnover
A
Sales (credit) / Avg. Accounts Rec.
7
Q
Receivable Collection Period
A
365 / Accounts Rec. Turnover
8
Q
Gross Profit Margin
A
Gross Profit / Sales
9
Q
Operating Profit Margin
A
Operating Income / Revenue
10
Q
Return on Assets (ROA)
A
EAT / Total Assets
11
Q
Return on Equity (ROE)
A
EAT / Equity
12
Q
Debt to Equity
A
Total long-term debt / Equity
13
Q
DTimes Interest Earned
A
EBIT / Interest Expense
14
Q
Debt Ratio
A
Total Debt / Total Assets
