ratios Flashcards
gross profit ratio
gross profit
—————- x 100%
net sales
net profit ratio
net profit
————- x100%
net sales
return on shareholders equity (ROE)
net profit
—————— x 100%
avg SE equity
return on total assets (ROI)
net profit
——————— x100%
avg total assets
inventory turnover ratio & average inventory holding period
cost of sales
——————-
avg inventory
365 days
————————-
inventory turnover
accounts receivable turnover & no. of days to collect accounts receivable
net sales
—————-
avg accounts receivable
365 days
—————————
accounts receivable turnover
assets turnover ratio
net sales
———————
avg total assets
current ratio
current assets
————————
current liabilities
quick ratio
current assets - inventory - prepaid expenses
—————————————————————-
current liabilities
