formulas Flashcards
1
Q
days sales
A
365 / turnover
2
Q
AR turnover
A
net Credit sales revenues / avg balance of AR
3
Q
inventory turnover
A
COGS / avg balance Inventory
4
Q
current ratio
A
CURRENT assets / CURRENT liabilities
5
Q
acid test
A
CURRENT assets (cash + AR) / CURRENT liabilities
6
Q
debt ratio
A
TOTAL liabilities / TOTAL assets
7
Q
debt to equity ratio
A
TOTAL liabilities / TOTAL owners’ equity
8
Q
book value per share
A
TOTAL assets—TOTAL liabilities / # of outstanding shares
9
Q
EPS
A
net income / # of outstanding shares
10
Q
P/E ratio
A
market price per share / EPS
11
Q
gross margin
A
net sales revenues—COGS
12
Q
% markup on cost
A
gross margin / COGS
13
Q
goodwill =
A
purchase price + liabilities — FMV
14
Q
Net income as a % of Investment
A
EPS
———————————
Market Price Per Share
15
Q
gross margin =
A
net sales revenue—COGS
