ratios Flashcards
The formula for current ratio:
Current Assets/Current liabilites
Formula for acid test ratio(Quick ratio):
(Current assets - Inventory)/Current liabilities
Formula for Inventory turnover:
CoGS/Average Inventory
Formula for Average age of Inventory:
365/Inventory turnover
Another formula for AAI
Inventory/COGS x 365
Formula for Average Collection Period:
Trade receivables x / Annual Credit Sales/365
Formula for Average Payment Period:
(Trade and other Payables x 365) / Annual Credit Purchases
Formula for Total Asset Turnover:
Sales / Total Assets
Formula for debt ratio:
Total liabilities/ Total assets
Formula for debt/equity ratio.
Total Liabilities / Total equity
Formula for Equity Multiplier:
Total Assets / Total Equity or 1 + D/E ratio
Formula for Times Interest Earned Ratio:
EBIT / Interest
Formula for Gross Profit Margin:
Gross Profit/ Net Sales
Formula for Operating Profit Margin:
EBIT / Net Sales
Formula for Net Profit MARGIN:
Net Profit for year/Sales
Formula for Earnings Per Share (EPS):
Net Profit for year/Number of Ordinary Shares issued
Formula for Return on Assets (ROA):
Net profit for the year/Total Assets
Formula for ROE:
IBT/Total equity
Formula for Price earnings Ratio
(MPS)Market price per ordinary share/ EPS
Formula for Book value per share:
Total Equity β Preference Share Capital/Number of ordinary shares issued
Formula for DuPonT System of AnaLYSIS:
π ππΈ=πππΓππ΄πΓπΉπΏπ
Formula for the Financial Leverage Multiplier(FLM):
Total Assets/Common Stock Equity
