Ratios Flashcards

1
Q

Gross Margin Percentage

A

(sales revenue - COGS) / sales revenue

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2
Q

Current Ratio

A

Current Assets / Current Liabilities

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3
Q

Inventory turnover

A

COGS / Average Inventory

-or-

Sales/Average Inventory

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4
Q

Return on Equity

A

Net Income / Shareholder’s Equity

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