Ratios

Question 1

Calculate the accounts receivable turnover (AR turnover)
Annual revenue $1000000
Accounts receivable $5000

Answer 1

$1000000÷$5000=$200 AR turnover

Question 2

Calculate revenue per DVM
Annual gross revenue $1000000
FTE vets 3.5

Answer 2

$1000000÷3.5=$285,714.28 revenue per DVM

Question 3

Calculate average age of A/R
Days in a year=365
A/R turnover =$200

Answer 3

365÷200=1.82 average age of AR

Question 4

Calculate the average transaction value (ATV)
Total revenue $1000000
Total number of transactions 1900

Answer 4

$1000000÷1900=$526

Question 5

Cash flow
(Current ratio)
Current Assets $23000
Current Liabilities $19000

Answer 5

23000÷19000=1.21

Question 6

Calculate efficiency ratio
Patient visits 550
Staff hours 350

Answer 6

550÷350=1.57

Question 7

Calculate employee retention
Number of positions retained (filled) 10
Number of positions in the organization 14

Answer 7

10÷14=0.71×100=71% employee retention

Question 8

Calculate employee turnover
4 employees left Summit
18 employees are still employed at Summit

Answer 8

4÷18=0.22×100=22%

Question 9

Calculate Equity Ratio
Total liabilities $45000
Total owners equity $100000

Answer 9

$45000÷$100000=0.45

Question 10

Calculate gross profit
Revenue $1000000
Cost of Goods Sold $50000

Answer 10

$1000000-$50000=$950000 gross profit

Question 11

Calculate inventory turnover rate (ITR)
Annual purchase of supplies $100000
Average inventory value $30000

Answer 11

$1000000÷$30000=33.33

Question 12

Calculate net income
Gross profit $95000
Operating expenses $65000

Answer 12

$95000-$65000=$30000 net income before taxes

Question 13

Calculate profit margin
Net income before taxes $64000
Revenue $90000

Answer 13

$64000÷$90000=0.71

Question 14

Calculate profitability Ratio
Operating income $68000
Revenue $100000

Answer 14

$68000÷100000=0.68

Question 15

Calculate ROI Return on Investment
Expected annual return $50000
Investment $25000

Answer 15

$50000÷$25000=2×100=200

Question 16

Calculate Working Capital
Cash on hand $30000
AR $5000
Current Liabilities $14000

Answer 16

$30000+$5000-$14000=$21000

Question 17

Calculate inventory on hand.
Beginning inventory (BI) 455
Ending inventory (EI) 677

Answer 17

455 + 677 ÷ 2= 566

Question 18

Calculate the inventory variance using the following data:
Beginning quantity=250
Amount ordered=1000
Amount sold=942
Physical count of quantity on hand = 298
Variance=

Answer 18

250+1000-942=308-298= variance of 10

Question 19

Pros- low holding costs, no expired products
Cons- high ordering costs, back orders can cause stock outs

Answer 19

What are the pros and cons of just in time ordering?

Question 20

Central supply
Zoning

Answer 20

What are 2 main inventory organizational techniques?

Question 21

Project revenue
Project COGs
Project COGs subsection expense
Share budget and communicate expectations

Answer 21

What are 4 steps to inventory budgeting?

Question 22

Equipment name
Manufacturer
Model/serial number
Purchase date/amount paid/Purchase location

Answer 22

A capital inventory list should contain what information?

Question 23

Using the data below what is the break even number for a potential laser machine purchase?
Purchase price $25000
Client cost $65
Tech time to preform services $15

Answer 23

65-15=50÷25000=500