Ratios Flashcards
1
Q
Current ratio
A
Current assets/Current Liabilities
2
Q
Quick (Acid test ratio)
A
Cash + Short-term investments + Accounts receivable /Current liabilities
3
Q
Cash ratio
A
Cash and cash equivalents/Current liabilities
4
Q
Accounts receivables days ratio
A
(Receivables/Revenue(sales) ) * 365
5
Q
Inventory turnover ratio
A
Cost of goods sold/inventory
6
Q
Days sales in Inventory
A
(Average inventory/ cost of goods sold) * 365
7
Q
Asset turnover
A
Sales/ Total Assets
8
Q
Debt to total assets ratio
A
Total Debt (ST + LT)/ Total Assets
9
Q
Debt to Equity
A
Total debt/Total Equity
10
Q
Profit Margin
A
((Revenue - Cost of goods sold)/Revenue) * 100
11
Q
Return on Sales
A
Operating profit/ sales
12
Q
Return on Equity
A
Net Profit Margin x Return on Assets x Equity Multiplier
13
Q
Equity Multiplier
A
Assets/Equity
