Financial Ratios Flashcards

1
Q

CURRENT RATIO

A

CURRENT ASSETS

____________________

CURRENT LIABILITIES

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2
Q

QUICK RATIO

A

CURRENT ASSETS - INVENTORY

____________________________

CURRENT LIABILITIES

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3
Q

INVENTORY TURNOVER RATIO

A

COST OF GOODS SOLD

______________________

INVENTORY

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4
Q

AVERAGE COLLECTION PERIOD

A

TRADE RECEIVABLE

______________________

AVG SALES/DAY

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5
Q

AVERAGE PAYMENT PERIOD

A

TRADE PAYABLES

________________

AVERAGE PURCHASES/DAY

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6
Q

TOTAL ASSET TURNOVER

A

SALES

_________

TOTAL ASSETS

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7
Q

DEBT RATIO

A

TOTAL LIABILITIES

___________________

TOTAL ASSETS

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8
Q

TIMES INTEREST EARNED

A

EBIT

_____________

INTEREST EXPENSE

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9
Q

GROSS PROFIT MARGIN

A

GROSS PROFIT

___________

SALES

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10
Q

OPERATING PROFIT MARGIN

A

OPERATING PROFIT

________________

SALES

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11
Q

NET PROFIT MARGIN

A

PROFIT FOR THE YEAR

__________________

SALES

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12
Q

EARNINGS PER SHARE

A

NET PROFIT

________________

NUMBER OF SHARES

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13
Q

RETURN ON ASSETS

A

NET PROFIT

___________

TOTAL ASSETS

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14
Q

RETURN ON EQUITY

A

NET PROFIT

_________

TOTAL EQUITY

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15
Q

PRICE/EARNINGS RATIO

A

MARKET PRICE/SHARE

________________

EARNINGS PER SHARE

OR

TOTAL MARKET VALUE SHARES

__________________________

NET PROFIT

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16
Q

MARKET/BOOK RATIO

A

MARKET PRICE SHARES

__________________

BOOK VALUE SHARES

WHERE

BOOK VALUE = TOTAL EQUITY/NUMBER OF SHARES