Ratios Flashcards
Working Capital
CA - CL
Current Ratio (WC Ratio)
CA / CL
Acid-Test
(Cash Equiv+Marketable Securities+Net Rec.) / CL
Cash Ratio
(Cash Equiv+Marketable Securities) / CL
AR Turnover
Net Credit Sales / Avg Net Rec
AR Turnover in Days
Avg Net Rec / (Net Credit Sales / 365)
Inventory Turnover
COGS / Avg Inventory
Inventory Turnover in Days
Avg Inv / (COGS / 365)
Operating Cycle
AR turnover in days + inventory turnover in days
Working Capital Turnover
Sales / Avg Working Capital
Total Asset Turnover
Net Sales / Avg Toal Assets
Net Profit Margin
Net Income / Net Sales
ROA
Net Income / Avg Total Assets
DuPont ROA
Net Profit Margin * Avg Total Assets
ROI
[NI + Interest Exp(1 - Tax Rate)] / [Average (Long-Term Liab / Equity)]
Return on Common Equity
(NI - Preferred Dividends) / Avg Common Equity
Debt to Equity
Total Liabilities / Common Stockholder’s Equity
Debt Ratio
Total Liabilities / Total Assets
Times Interest Earned
(Recurring EBIT) / Interest
Avg Day’s Sales in Inventory
365 / Inventory Turnover
Inv Turnover = (COGS / Avg Inv)
