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EFMA RATIOS > ratios > Flashcards

ratios Flashcards

1
Q

The formula for current ratio:

A

Current Assets/Current liabilites

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2
Q

Formula for acid test ratio(Quick ratio):

A

(Current assets - Inventory)/Current liabilities

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3
Q

Formula for Inventory turnover:

A

CoGS/Average Inventory

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4
Q

Formula for Average age of Inventory:

A

365/Inventory turnover

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5
Q

Another formula for AAI

A

Inventory/COGS x 365

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6
Q

Formula for Average Collection Period:

A

Trade receivables x / Annual Credit Sales/365

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7
Q

Formula for Average Payment Period:

A

(Trade and other Payables x 365) / Annual Credit Purchases

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8
Q

Formula for Total Asset Turnover:

A

Sales / Total Assets

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9
Q

Formula for debt ratio:

A

Total liabilities/ Total assets

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10
Q

Formula for debt/equity ratio.

A

Total Liabilities / Total equity

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11
Q

Formula for Equity Multiplier:

A

Total Assets / Total Equity or 1 + D/E ratio

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12
Q

Formula for Times Interest Earned Ratio:

A

EBIT / Interest

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13
Q

Formula for Gross Profit Margin:

A

Gross Profit/ Net Sales

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14
Q

Formula for Operating Profit Margin:

A

EBIT / Net Sales

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15
Q

Formula for Net Profit MARGIN:

A

Net Profit for year/Sales

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16
Q

Formula for Earnings Per Share (EPS):

A

Net Profit for year/Number of Ordinary Shares issued

17
Q

Formula for Return on Assets (ROA):

A

Net profit for the year/Total Assets

18
Q

Formula for ROE:

A

IBT/Total equity

19
Q

Formula for Price earnings Ratio

A

(MPS)Market price per ordinary share/ EPS

20
Q

Formula for Book value per share:

A

Total Equity – Preference Share Capital/Number of ordinary shares issued

21
Q

Formula for DuPonT System of AnaLYSIS:

A

𝑅𝑂𝐸=𝑁𝑃𝑀×𝑇𝐴𝑇×𝐹𝐿𝑀

22
Q

Formula for the Financial Leverage Multiplier(FLM):

A

Total Assets/Common Stock Equity

EFMA RATIOS (1 decks)

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