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Accounting Essentials > Key Ratios > Flashcards

Key Ratios Flashcards

1
Q

Acid test

A

(Current assets - inventory) / current liabilities

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2
Q

Debt to equity ratio

A

Total liabilities/ shareholders equity

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3
Q

Working capital ratio

A

Current assets / current liabilities

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4
Q

Earnings per share

A

Net income/ outstanding shares

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5
Q

Profit margin

A

Profit/ revenue

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Accounting Essentials (9 decks)

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