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 liabilties
4
Q
Inventory Turnover
A
Cost of goods sold / average inventory
5
Q
Days to Sell Inventory
A
365 / Inventory Turnover
6
Q
Accounts Receivable Turnover
A
Sales (or credit) / Average accounts receivable
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
A
Earnings after Tax / Assets
11
Q
Return on Equity
A
Earnings after Tax / Equity
12
Q
Debt to Equity
A
Long-term debt / Equity
13
Q
Times Interest Earned
A
EBIT / Interest Expense
14
Q
Debt Ratio
A
Total Debt / Total Assets
15
Q
Front-End Ratio
A
PITI / Gross Income
