Ratio Analysis Formulas Flashcards
Ch 5 | Activity Ratio:
Receivables Turnover =
Net sales
_____________
Avg. A/R (net)
Activity Ratio:
Inventory Turnover =
COGS
_____________
Avg. Inventory
Ch 5 | Activity Ratio:
Avg. Collection Period =
365
________________________
Receivables Turnover Ratio
Ch 5 | Activity Ratio:
Avg. Days in Inventory / Avg. Collection Period =
365
______________________
Inventory Turnover Ratio
Leverage Ratio:
Equity multiplier =
Avg. Total Assets
_________________
Avg. Total Equity
Ch 3 | Liquidity Ratio:
Current Ratio =
Current Assets
_______________
Current Liabilities
Ch 3 | Liquidity Ratio:
Acid-test / Quick Ratio
Quick Assets
(Current Assets - Prepaid Exp - Inventory)
___________________________________
Current Liabilities
Profitability Ratio:
Profit margin on sales =
Net Income
___________
Net sales
Profitability Ratio:
Return on Assets =
Net Income
________________
Avg. Total Assets
Profitability Ratio:
Return on Shareholders’ Equity =
Net Income
_______________________
Avg. Shareholders’ equity
Ch 3 | Financing Ratio:
Debt to Equity =
Total Liability
_________________
Shareholders’ Equity
Ch 3 | Financing Ratio:
Times interest earned =
Net Income + Interest Exp + Income Tax
_________________________________
Interest Exp
Ch 5 | Activity Ratio
Asset Turnover Ratio
Net Sales
____________________
Average Total Assets
Ch 5 | Activity
?
Ch 5 | Profitability Ratios
Profit Margin on Sales
Net Income
______________
Net Sales
