Ratios Flashcards
1
Q
Quick Ratio
A
(Cash + AR + Trading Securities)/ Current Liabilities
2
Q
Current Ratio
A
Current Assets/ Current Liabilities
3
Q
Working Capital
A
Current Assets - Current Liabilities
4
Q
AR Turnover
A
Credit Sale/ Average AR
5
Q
Inventory Turnover
A
COGS/ Avg. Inventory
6
Q
Day Sales in Inventory (Avg. Day’s Sales)
A
365/ Inventory Turnover
7
Q
Days to Collect AR
A
Avg. AR/ Avg. Sales Per Day
8
Q
Return on Common SHE
A
(NI - PS Dividends)/ Avg. CSE
Note: Avg. CSE = CS + RE
9
Q
BV per share of CS
A
Total Book Value/ Shares Outstanding
10
Q
Dividends Per Share Payout Ratio
A
Dividends Per Share/ EPS
