Ratio's Flashcards
1
Q
Net Profit Ratio
A
Net Operating Profit/Net Sales x100
2
Q
Rate of Return on Owners Equity
A
Net Operating Profit/Average Equity x100
3
Q
Current Ratio
A
Current Assets/Current Liabilities
4
Q
Quick Asset Ratio
A
Current Assets - (inventories + prepayments)/Current Liabilities - overdraft
5
Q
Equity Ratio
A
Equity/Total Assets x100
6
Q
Turnover of Inventories
A
Cost of Goods Sold/Average inventories
7
Q
Turnover of Accounts Receivable (days)
A
Average accounts receivable/Net Credit Sales x365
8
Q
Gross Profit Ratio
A
Gross Profit/Net Sales x100
