Ratios Flashcards
1
Q
Current Ratio
A
Current Assets/Current Liabilities
2
Q
Quick Ratio
A
(Current Assets - Inventory)/Current Liabilities
3
Q
New working Capital to sales
A
(current Assets - Current Liabilities)/Sales
4
Q
Inventory Turnover
A
COGS/Avg Inventory
5
Q
AR Turnover
A
Sales on Credit/Avg net AR
6
Q
Gross Profit Margin
A
(net sales - COGS)/net Sales
7
Q
Days’ sales in receivables
A
Number of days in year/AR turnover
8
Q
Days’ sales inventory
A
Number of days in year/Inv Turnover
9
Q
Debt to equity ratio
A
Total Debt/Total equity
10
Q
Net Operating Margin %
A
Operating Income/Net Sales
11
Q
Return on Equity
A
Net income/ Total Equity
12
Q
Total Asset Turnover
A
Net sales/Total Assets
13
Q
Times Interest
A
EBIT or EBITA/Interest Charge
