Formulas Flashcards
1
Q
Current Ratio
A
(total current assets) / (total current liabilities)
2
Q
Cash Ratio
A
(cash + cash equivalents) / (total current liabilities)
3
Q
Acid Ratio
A
measures whether a company can pay all its current liabilities if they came due immediately
4
Q
Inventory Turnover
A
(cost of goods sold) / (average merch inventory)
5
Q
Day’s Sales in Inventory
A
(365 days) / Inventory turnover
6
Q
Gross Profit Percentage
A
(Gross Profit) / (Net Sales Revenue)
7
Q
Debt Ratio
A
(Total Liabilities) / (Total Assets)
8
Q
EPS
A
net income - preferred dividends / weight avg # of common shares outstanding
9
Q
TIMES INTEREST EARNED RATIO
A
net income + income tax expense + interest expense / interest expense
