Financial Statement Equations /Liquidity Ratios/asset management ratios Flashcards
1
Q
Current ratio
A
Total current assets divided by total current liabilities.
2
Q
Quick ratio
A
Cash + AR divided by current liabilities.
3
Q
Earnings-per-share EPS
A
Net income divided by number of common stock shares
4
Q
Cash ratio
A
Cash divided by total current liabilities
5
Q
Total asset, TA turnover ratio
A
Net sales divided by total assets (average)
6
Q
Fixed asset capital (FA) turnover ratio
A
Net sales divided by Net Plant & Equipment
7
Q
Inventory turnover ratio
A
Net Sales divided by inventory
8
Q
Accounts receivable (AR) turnover ratio
A
Net sales divided by AR(average)
9
Q
Day sales, outstanding DSO
A
AR(average) divided net sales divided by 365
