Financial Ratios

Question 1

Gross Margin P

Answer 1

Gross profit (Sales - COGS) / Sales
(Operating margin)

Question 2

Operating expense ratio P

Answer 2

Operating cost (SG&a) / Sales
(Operating Margin)

Question 3

Amorisation Ratio P

Answer 3

D&A / Sales

Question 4

Operating Margin P

Answer 4

EBIT / Sales

Question 5

Fiancial Expense Ratio P

Answer 5

Interests / Sales

Question 6

Fixed Asset Turnover PROD

Answer 6

Sales / Fixed Assets

LT

Question 7

Effective Tax Rate P

Answer 7

Taxes / EBT

Question 8

Average collection period PROD

Answer 8

Receivables / Sales *365

Question 9

Receivables Turnover PROD

Answer 9

Sales / Receivables

Question 10

Invetory Days Outstanding PROD

Answer 10

Inventory / COGS *365

Question 11

Inventory Turnover

Answer 11

COGS / Inventory

Question 12

Payables days outstanding PROD

Answer 12

Payables / COGS *365

Question 13

Cash conversion cycle PROD

Answer 13

Collection Period + Days in stock - Days accounts payable

Question 14

Quick ratio LEV

Answer 14

Cash & equi. + Receivables / Current liabilities

Question 14

Current ratio LEV

Answer 14

Current assets / current liabilities

Question 15

Interest coverage LEV

Answer 15

EBIT /Interest

Question 16

Financial burden coverage

Answer 16

EBIT / interest + (Principal payment / (1-taxes/EBT))