Ratio Analysis Flashcards

1
Q

Net Working Capital Formula

A

Current Asset - Current Liabilities

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2
Q

Current Ratio

A

Current Assets / Current Liabilities

  1. Cash and Cash Equivalents
  2. Marketable Securities
  3. Account Receivables
  4. Inventory
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3
Q

Quick Ratio - Acid Test Ratio

A

Current Asset - Inventory / Current Liabilities

  1. Cash and Cash Equivalents
  2. Marketable Securities
  3. Account Receivables
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4
Q

Cash Ratio

A

Current Asset - Inventory-A/R / Current Liabilities

  1. Cash and Cash Equivalents
  2. Marketable Securities
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5
Q

Inventory Turnover

A

COGS / Average Inventory

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6
Q

Inventory Conversion Period

A

365 / Inventory Turnover

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7
Q

Days in Inventory

A

Ending Inventory / (COGS / 365)

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8
Q

Average Accounts Receivable Turnover

A

Credit Sales / Average Accounts Receivable

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9
Q

Receivables Collection Period

A

365 / Average Accounts Receivable Turnover

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10
Q

Accounts Payable Turnover

A

Purchases / Average Accounts Payable

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11
Q

Payable Conversion Period

A

365 / Accounts Payable Turnover

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12
Q

Days in Receivables

A

Net Ending Accounts Receivable / (Net Sales / 365)

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13
Q

Days Sales in Accounts Payable

A

Net Ending Accounts Payable / (COGS / 365)

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14
Q

Asset Turnover

A

Total Sales / Average Total Assets

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15
Q

Net Profit Margin

A

(Revenue - Expenses = Net Profit) / Revenue

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16
Q

Gross Margin

A

(Revenue - COGS) / Revenue

17
Q

Return on Asset (ROA)

A

Net Income / Average Total Assets

18
Q

Return on Equity (ROE)

A

Net Income / Average Shareholder’s Equity

19
Q

Return on Investment (ROI)

A

Net Income / Average Invested Capital

20
Q

Solvency Ratios

A
  1. Total Debt Ratio / Debt -to-Total Assets
  2. Debt to Total Capital
  3. Debt to Equity
  4. Time Interest Earned
21
Q

Debt to Capital

A

Total Debt / Total Capital

22
Q

Debt to Equity

A

Total Debt / Total Equity

23
Q

Times Interest Earned Ratio

A

EBIT / Interest Expense

24
Q

Price to Sale Ratio

A

Market Price / Expected Sales

25
Q

Price to Earning Ratio

A

Market Price / EPS

26
Q

Price to Cash Flow Ratio

A

Market Price / Expected Cash Flows

Market Value / Expected Cash Flows

27
Q

Price to Book Ratio

A

Market Value / Book Value

28
Q

Working Capital Turnover

A

Sales / Average Working Capital