Ratio Analysis and Math Flashcards
1
Q
X Turnover
A
(AR/Asset = Net Sales; Inventory/AP = COGS) / Avg X
2
Q
Days in X
A
Ending X / [(AR = Sales; Inventory/AP = COGS)/365]
3
Q
Cash Conversion Cycle
A
Days in AR + Days in Inventory - Days in AP
4
Q
Profit Margin
A
NI / Net Sales
5
Q
Return on X
A
NI / Avg Total X
6
Q
Return on Sales
A
EBIT / Net Sales
7
Q
Equity Multiplier
A
TA / TE
8
Q
Times Interest Earned
A
EBIT / Interest Expense
9
Q
PPS Sample Size
A
Tolerable Misstatement / Reliability Factor = Sampling Interval
BV / Sampling Interval = Sample Size
