Ratios

Question 1

Working Capital

Answer 1

CA-CL

Question 2

Current Ratio

Answer 2

CA/CL

Question 3

Acid Test

Answer 3

(CA-Prepaid Expenses-Inventory)/CL

Question 4

Accounts Receivable Turnover

Answer 4

Sales on Account/Avg Receivables

Question 5

Average Collection Period

Answer 5

365/Accounts Receivable Turnover

Question 6

Inventory Turnover

Answer 6

Cost of Goods Sold/Avg I

Question 7

Average Sale Period

Answer 7

365/Inventory Turnover

Question 8

Operating Cycle

Answer 8

Avg Sale Period +Avg Collection Period

Question 9

Total Asset Turnover

Answer 9

Sales/Avg Total Assets

Question 10

Times Interest Earned

Answer 10

Operating Income/Interest Expense

Question 11

Debt to Equity Ratio

Answer 11

Liabilities/Equity

Question 12

Equity Multiplier

Answer 12

Avg Assets/Avg Equity

Question 13

Gross Margin Percentage

Answer 13

Gross Margin/Sales

Question 14

Net Profit Margin Percentage

Answer 14

Net Income/Sales

Question 15

Return on Total Assets

Answer 15

Net Income+(Interest Expense(1-Tax Rate))/Avg Total Assets

Question 16

Return on Equity

Answer 16

Net Income/Avg Equity

Question 17

Earnings Per Share

Answer 17

Net Income/Avg Number of Shares

Question 18

Price Earnings Ratio

Answer 18

Market Price/Earnings Per Share

Question 19

Dividend Payout

Answer 19

Dividends Per Share/Earnings Per Share

Question 20

Dividend Yield

Answer 20

Dividends Per Share/Market Price

Question 21

Book Value

Answer 21

Equity/Number of Shares