RATIO AND VARIANCE ANALYSIS Flashcards
__________ has direct relationship with the ratio
Numerator
________ has an inverse relationship with ratio
Denominator
Gross profit Margin
(Sales - COGS)/ Sales
Profit Margin
Net Income/Sales
Return on Sales
EBIT/ Sales
Return on Assets
Net Income/ Avg total assets
Dupoint Return on assets
Profit Margin X Asset TO
Return on Equity
Net Income/ Avg total equity
Operating Cash Flow Ratio
CF from operations/ CL
Current Ratio
CA/CL
Quick Ratio
(Cash+Short term marketable securities + Receivables)/CL
Accounts Receivable Turnover
Sales/Avg Acc receivable
Days Sales in Accounts Receivable
Ending Accounts Receivable/ Sales/365
Inventory Turnover
COGS/Avg Inventory
Days in Inventory
Ending Inventory/(COGS/365)
Accounts Payable Turnover
COGS/Avg Acc Payable
Days of Payables Outstanding
Ending Acc Payables/COGS/365
Cash Conversion Cycle
Days sales in AR + Days in inventory - Days of payables OS
Debt to Equity
Total Liabilities/ Total Equity
Total Debt Ratio
Total Liabilities/ Total Assets
Equity Multiplier
Total Assets/ Total Equity
Times Interest Earned
EBIT/Interest Expense
Earnings Per Share
Income Available to common Shareholders/ WACSO
Price to earnings ratio
Price per share/ Basic EPS
Dividend Payout
Cash Dividends/Net Income
Asset Turnover
Sales/ Avg Total Assets
