Ratios Flashcards
1
Q
Working Capital
A
CA-CL
2
Q
Current Ratio
A
CA/CL
3
Q
Acid Test
A
(CA-Prepaid Expenses-Inventory)/CL
4
Q
Accounts Receivable Turnover
A
Sales on Account/Avg Receivables
5
Q
Average Collection Period
A
365/Accounts Receivable Turnover
6
Q
Inventory Turnover
A
Cost of Goods Sold/Avg I
7
Q
Average Sale Period
A
365/Inventory Turnover
8
Q
Operating Cycle
A
Avg Sale Period +Avg Collection Period
9
Q
Total Asset Turnover
A
Sales/Avg Total Assets
10
Q
Times Interest Earned
A
Operating Income/Interest Expense
11
Q
Debt to Equity Ratio
A
Liabilities/Equity
12
Q
Equity Multiplier
A
Avg Assets/Avg Equity
13
Q
Gross Margin Percentage
A
Gross Margin/Sales
14
Q
Net Profit Margin Percentage
A
Net Income/Sales
15
Q
Return on Total Assets
A
Net Income+(Interest Expense(1-Tax Rate))/Avg Total Assets
