Financial Ratios - Formulas Flashcards
1
Q
Current Ratio
A
Current Assets / Current Liabilities
2
Q
Quick Ratio (Acid-Test)
A
(Current Assets - Inventory) / Current Liabilities
3
Q
Cash Ratio
A
Cash / Current Liabilities
4
Q
Total Debt Ratio
A
(Ttl Assets - Ttl Equity) / Ttl Assets
5
Q
Debt-to-Equity Ratio
A
Ttl Debt / Ttl Equity
6
Q
Equity Multiplier
A
Ttl Assets / Ttl Equity
(Ttl Assets + Ttl Debt) / Ttl Equity
1 + Debt-Equity Ratio
7
Q
Times Interest Earned
A
EBIT / Interest
8
Q
Cash Coverage
A
(EBIT + Depr) / Interest
9
Q
Inventory Turnover
A
COGS / Average Inventory
10
Q
Days’ Sales in Inventory
A
365 days / Inventory Turnover
11
Q
Receivables Turnover
A
Sales / Average Account Receivables
12
Q
Days’ Sales in Receivables
A
365 days / Receivables Turnover
13
Q
Total Assets Turnover
A
Sales / Ttl Assets
14
Q
Profit Margin
A
Net Income / Sales
15
Q
Operating Margin
A
EBIT / Sales
