Ratios Flashcards
1
Q
Current Assets/Current Liabilities
A
Current Ratio
2
Q
(Current Assets - Inventories) / Current Liabilities
A
Quick Ratio
3
Q
Current Assets - Current Liabilities
A
Working Capital
4
Q
Total Long Term Debt/ Equity
A
Debt to Equity
5
Q
EBIT/ Interest Expense
A
Times Interest Earned
6
Q
Total Debt / Total Assets
A
Debt Ratio
7
Q
Cost of Goods Sold/ Average Inventory
A
Inventory Turnover
8
Q
365/ Inventory Turnover
A
Days to Sell Inventory
9
Q
Sales (credit)/ Average accounts Receivable
A
Accounts Receivable Turnover
10
Q
365/ Accounts Received Turnover
A
Receivable Collection Period
11
Q
Gross Profit/ Sales
A
Gross Profit Margin
12
Q
Operating Income/ Revenue
A
Operating Profit Margin
13
Q
EAT/ Total Assets
A
Return on Assets (ROA)
14
Q
EAT/ Equity
A
Return on Equity (ROE)
