Ratios Flashcards
Current Ratio (L)
Current Assets / Current Liabilities
Quick Ratio (L)
(Current Assets - Inventory - Prepaid Expenses) / Current Liabilities
Meeting current obligations with most liquid assets (subtract inventory and prepaid expenses)
Accounts Receivable Turnover (A)
Credit Sales / Average Accounts Recievable
Average Collection Period (A)
365 days / Accounts Receivable Turnover
Inventory Turnover (A)
Cost of Goods Sold / Average Inventory
Days to Sell Inventory (A)
365 days / Inventory Turnover
Accounts Payable Turnover (A)
Credit Purchases / Average Accounts Payable
Accounts Payable Payment Period (A)
365 days / Accounts Payable Turnover
Debt to Equity (S)
Net Debt / Shareholders Equity
Net Debt = Interest Bearing Debt (loans, mortgages, bonds payable that are current and non-current) - Cash
Net Debt as a Percentage of Total Capitalization (S)
Net Debt / SE + Net Debt
Interest Coverage (S)
EBITDA / Interest Expense
Cash Flows to Total Liabilities (S)
Cash Flows from Operating Activities / Total Liabilities
Gross Margin (P)
Gross Margin / Sales Revenue
Gross Margin = Net Sales - COGS
Profit Margin (P)
Net Income / Sales Revenue
Return on Equity (P)
Net Income / Avg. Total SE
