KPIs For CEOs Flashcards by Craig Barker | Brainscape

Q

Current ratio

A

Ability to meet short term obligations

Current assets / current liabilities

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Q

Quick Ratio (Acid Test)

A

Ability to meet short term liabilities without having to convert inventory

Current assets - inventory / current liabilities

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Q

Net Profit Margin (NPM)

A

Percentage revenue retained in business as profit

Net profit / revenue x 100

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Q

Return on Assets

A

How efficient assets are used

Net Income / Total Assets

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Q

Debt to Equity (gearing)

A

Total debt / total equity

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Q

Debt coverage ratio

A

Ability to cover debt obligations from

EBIT / interest or EBIT / interest & cap

Use CFADS

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Q

Inventory turnover

A

Speed at which inventory is sold

COGS / average inventory

Higher suggests better sales efficiency

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Q

Accounts receivable turnover

A

How quickly customers settle bills

Higher is better suggesting quicker collections

COGS / accounts receivable

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