Just rati

Question 1

liquidity: curent ratio?

Answer 1

current assets / current liabilities

Question 2

liquidity: quick ratio?

Answer 2

cash + marketable securities + net receivables / current liabilities

Question 3

liquidity: receivables turnover?

Answer 3

net credit sales / average net trade receivables

Question 4

liquidity: average collection period?

Answer 4

365 days / receivables turnover

Question 5

liquidity: inventory turn over?

Answer 5

cost of sales / average inventory

Question 6

liquidity: average days in inventory?

Answer 6

365 days / inventory turnover

Question 7

solvency: debt to total asset?

Answer 7

total liabilities / total assets

Question 8

solvency: times interest earned?

Answer 8

earning before tax and interest / interest expense

Question 9

Profitability: return on ordinary shareholders’ equity ratio?

Answer 9

profit avail to ordinary shareholders / average ordinary shareholders’ equity

Question 10

Profitability: return on assets?

Answer 10

profit after tax / average total assets

Question 11

Profitability: profit margin?

Answer 11

profit after tax / net sales

Question 12

Profitability: asset turnover?

Answer 12

net sales / average total assets

Question 13

Profitability: return on assets using other formulas?

Answer 13

profit margin x asset turnover
OR
profit after tax x average total assets

Question 14

Profitability: gross profit rate?

Answer 14

gross profit / net sales

Question 15

Profitability: operating expense to sales ratio?

Answer 15

operating expenses / net sales