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
COGS / avg. inventory
5
Q
COGS
A
cost of goods sold
6
Q
days to sell inventory
A
365 / inventory turnover
7
Q
accounts receivable turnover
A
sales (credit) / avg. accounts receivable
8
Q
receivable collection period
A
365 / accounts receivable turnover
9
Q
profit margin
A
gross profit / sales
10
Q
operating profit margin
A
operating income / revenue
11
Q
EAT
A
earnings after tax
12
Q
return on assets (ROA)
A
EAT / total assets
13
Q
return on equity (ROE)
A
EAT / equity
14
Q
debt to equity
A
total long-term debt / equity
15
Q
EBIT
A
earnings before interest and tax
