Liquidity and probability and financial levarage Flashcards
1
Q
current ratio
A
current asset/current liabilities
(whole/decimal final answer)
2
Q
quick ratio
A
(Cash+Marketable Securities+Accounts Receivable)/Current Liabilities
(whole/decimal final answer)
3
Q
Return on Equity (ROE)
A
Net Income/Shareholder’s Equity
(% answer)
4
Q
Return on Assets (ROA)
A
net income/total assets
(% final answer)
5
Q
gross profit margin
A
gross profit/net sales
(whole number)
6
Q
net profit margin
A
net profit/ sales
(% answer)
7
Q
accounts receivable turnover
A
sales/accounts receivable
(whole number)
8
Q
inventory turnover ratio
A
COGS/Inventory
(whole number)
9
Q
accounts payable turnover ratio
A
purchases/ inventory
(Whole number)
10
Q
debt ratio
A
total liabilities/total assets
(% answer)
