Ratio equations Flashcards
1
Q
liquidity is found using what ratio
A
current ratio
2
Q
gearing is found using what ratio
A
debt to equity ratio
3
Q
profitability is found using what ratio
A
gross profit ratio
net profit ratio
return on equity ratio
4
Q
efficiency is found using what ratio
A
expense ratio
accounts receivable turnover ratio
5
Q
current ratio
A
current assets / current liabilities
6
Q
debt to equity ratio
A
total liabilities / total equity
7
Q
gross profit ratio
A
gross profit / sales
8
Q
net profit ratio
A
net profit / sales
9
Q
return on equity ratio
A
net profit / total equity
10
Q
expense ratio
A
total expenses / sales
11
Q
accounts receivable turnover ratio
A
sales / accounts receivable
