Ratios Flashcards
1
Q
Accounting Equation
A
Assets-Liabilities=equity
2
Q
AR turnover ratio
A
Annual Rev credit based/Accounts receivable
3
Q
Ave Age of AR
A
365/AR turnover
4
Q
Ave age of inventory
A
365/Inventory turnover
5
Q
Inventory turnover rate
A
Total spent/average inventory value
6
Q
Ave inventory value
A
BV+EV/2
7
Q
ROI
A
Revenue from Capital/Investmentx100
8
Q
Equity ratio
A
Total debt/total equity
9
Q
Economic order quantity
A
Square root of
Annual demand # x2 x order cost pp / holding cost as % of pp x cost to purchase
