Ratio Analysis

Question 1

What is the debt to equity ratio

Answer 1

Debt to Equity ratio

Equity

Question 2

What is Accounts Receivables turnover No problem collecting

Answer 2

Average accounts receivables

beginning + ending receivaables divided by 2

Question 3

What is inventory turnover?

Answer 3

average inventory

Beginning inventory + Ending inventory divided by 2

Question 4

What is asset turnover

Answer 4

Average total Assets

Beginning total assets + ending total assets /2

Question 5

What is Days in inventory? Number of days to sell

Answer 5

Cost of goods sold/365

Question 6

Accounts payable turnover

Answer 6

Average accounts payable

That means no problem paying on time but don’t pay too fast unless 2/net 30

Question 7

What is working Capital ?

Answer 7

Working Capital - Current assets - Current liabilities

Question 8

Working capital turnover

Answer 8

average working capital

Question 9

Profit Margin Ratio

Answer 9

Sales (net)

Question 10

Net profit margin

Answer 10

Sales (net)