RATIOS Flashcards
INVENTORY TURNOVER
Inventory turn = COGS
————
Average Inventory
Quick Ratio / Acid Test
Cash + Receveibles + Marketable Securities
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CURRENT LIABILITIES
Interest Coverage
EBIT
———
Interest
Gross Profit Margin
Gross profit
——————-
Revenue
Double Declining balance
2/ useful life x (COST - ACUM. Depreciation)
UNITIS OF PRODUCTION
(Cost - Salvage value) x (output) units
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Useful life IN UNITS
Tax Expense
Tax payable + dif.DTL - dif. DTA
Net profit margin
Net Income
—————
Sales
Effective Tax Rate
Tax Expense
——————-
EBT
Asset turnover
Revenue
—————
Average total assets
Inventory Days on Hand
Avarege inventory for the year x 365
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COGS
NRV
Expected Selling Price - Total Selling cost
Three Part DuPont Equation
(NAL)
NET PROFIT Margin x
Asset TurnOver x
Leverage Ratio.
How should Permantly Impaired Value be written down?
To its recoverable Amount (Fair Value - Selling Costs)
Accounts Receivable Turnover
Net credit Sales
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Avg. accounts Receivable
Cash Covertion Cycle
Days os sales Outstanding +
Days inventory’s on hand -
Number of days of payables
Days of sales outstanding
365
———
Receivables Turnover
Laverage Ratio
Total Assets
——————-
Total Equity
Interest Expense
Total Debt x Interest rate
Cash Ratio
Cash + Cash Equivalents
————————————
Current Liabilities
Defensive Interval
Cash + mrkt. Securities + receveibles
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Daily Cash Expenditures
Receivables Turn Over
Annual Sales
———————
Avg. Receivables
Payables Turnover
Purchases
—————————
Avg. trade payables
Days of Sales Outstanding
365
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Receivables Turnover
