Financial Ratios Flashcards
Working Capital
Current Assets - Current Liabilities
Current Ratio (working capital ratio)
Current Assets / Current Liabilities
Acid Test (Quick) Ratio
Cash + Cash equivalents + Marketable Securities + Net Receivables / Current Liabilities
Cash Ratio
Most Liquid
Cash + Cash Equivalents + Marketable Securities / Current Liabilities
Accounts Receivable Turnover
Net Credit Sales / Average Net Receivables
Accounts Receivable Turnover (in Days)
Average Net Receivables / (Net Credit Sales / 365)
Inventory Turnover
COGS / Average Inventory
Inventory Turnover (in Days)
Inventory Conversion Period
Ending Inventory / (COGS / 365)
Operating Cycle
AR Turnover in Days + Inventory Turnover in Days
Working Capital Turnover
Sales / Average Working Capital
Total Asset Turnover
Net Sales / Average Total Assets
Net Profit Margin
Net Income / Net Sales
Return on Total Assets
Net Income / Average Total Assets
DuPont Return on Assets
Net Profit Margin x Total Asset Turnover
Return on Common Equity
Net Income - Preferred Dividends / Average Common Equity
