Formulas

Question 1

Inventory Turn Over Ratio

Answer 1

Cost of Goods Sold over 1 year / Average Inventory Value

Question 2

Gross Profit

Answer 2

Gross Profit ($) = Sale Price - COGS

Question 3

Gross Margin

Answer 3

Gross Margin (%) = Gross Profit / COGS

Question 4

Sale Price

Answer 4

Sale Price = COGS / (1 - Gross Margin)

Question 5

Net Profit

Answer 5

Revenues - Expenses (before tax)

Question 6

Current Ratio

Answer 6

Current Ratio = Current Assets / Current Liabilities

Question 7

Quick Ratio

Answer 7

Quick Ratio = Current Assets (minus inventory and prepaid expenses) / Current Liabilities

Question 8

Number of days of Accounts Receivable

Answer 8

Number of days of AR = (Account Receivable / Total Revenue) * 365

Question 9

Debt to Equity Ratio

Answer 9

Debt to Equity Ratio = Total Liabilities / Equity

Question 10

Gross Profit Return on Inventory

Answer 10

GPROI = (Gross Profit / Inventory) * 100

Question 11

Return on Operating Assets

Answer 11

Return on Operating Assets = (Normalized Net Income (Before taxes) / Operating Assets) * 100%

Question 12

Return on Equity Income Tax

Answer 12

Return on Equity = (EBITDA / Equity) x 100%

Question 13

EBITDA

Answer 13

COGS - Sales + Other Revenue = Overall Gross Profit

Overall Gross Profit - Total Operating Expenses