Ratios Flashcards
1
Q
Profit Margin
A
Net Income/ Sales
2
Q
Return on Equity
A
Net Income/ Owners’ Equity
3
Q
Inventory Turnover
A
Costs of Goods Sold/ Average Inventory
4
Q
Current Ratio
A
Current Assets/ Current Liabilities
5
Q
Acid Test
A
Cash+ Accounts Receivable+ Marketable Securities/ Current Liabilities
6
Q
Debt to Owners’ Equity
A
Total Liabilities/ Owners’ Equity
7
Q
Basic Earnings Per Share (EPS)
A
Net Income/ # of Common Shares Outstanding
