Ratios Flashcards
1
Q
Current Ratio
A
Current assets / current liabilities
2
Q
Quick ratio
A
(current assets - prepaids - inventory) / current liabilities
3
Q
Receivables Turnover
A
Credit sales / average AR
4
Q
Days in receivables
A
Average AR / (Credit sales / 365)
5
Q
Inventory turnover
A
COGS / Average inventory
6
Q
Days in Inventory / Inventory Period
A
Average inventory / (COGS / 365)
7
Q
Gross margin percentage
A
(sales - COGS) / sales
8
Q
Profit margin
A
Net income / sales
9
Q
Return on assets
A
Net income / average total assets
10
Q
Return on equity
A
Net income / average equity
11
Q
Debt ratio
A
Total liabilities / total assets
12
Q
Debt to equity
A
Total liabilities / equity
13
Q
Debt service coverage
A
Net operating income / (principal + interest payments)
14
Q
Times-interest-earned ratio
A
EBIT / interest
15
Q
Asset turnover
A
Sales / average total assets
