Ratio Analysis (F2:M8)

Question 1

working capital turnover

Answer 1

sales/avg working capital

working capital = current assets - current liabilities

Question 2

operating CF ratio

Answer 2

operating CF/ending current liabilities

Question 3

study A3(M7-M9)

Answer 3

bet

Question 4

turnover ratios and most “return on” ratios use ___.

Answer 4

averages

Question 5

what is the difference between Return on Assets and DuPont Return on Assets?

Answer 5

basically nothing, they’re calculated the same way:

Net Income/Avg Total Assets

Dupont is Profit Margin x Asset Turnover