Ratios Flashcards
What is the current ratio?
Current assets / current liabilities
What is the quick ratio?
(Cash + Marketable Securities + A/R) /
Current Liabilities
What is the cash ratio?
(Cash + marketable securities) /
Current Liabilities
What is the receivable turnover ratio?
Net Sales /
(Beginning A/R + Ending A/R)/2
What is the inventory turnover ratio?
COGS /
(Beginning inventory + ending inventory)/2
What is the payables turnover ratio?
COGS /
(Beginning AP + Ending AP)/2
What is the cash conversion cycle calculation?
Inventory turnover period + days to collect A/R - Payable payment period
What is the net fixed asset turnover ratio?
Net Sales / ((Beginning F/A + Ending F/A)/2)
What is the total asset turnover ratio?
Net sales / (Beginning total assets + ending total assets)/2)
What is the cost of sales ratio?
Cost of sales / Net sales
What is the gross margin ratio?
(Net sales - cost of sales) / Net sales
What is the operating expenses ratio?
Operating expenses / Net sales
What is the operating margin ratio?
Income from Operations / net sales
What is the return on asset ratio?
Net income / ((Beginning total assets + ending total assets)/2)
What is the return on equity ratio?
Net Income / ((Beginning equity + ending equity)/2)
What is the coefficient of Variation of operating income?
σEBIT /
μEBIT
σ – is the symbol for the standard deviation
μ – the symbol for the Mean (or average).
What is the sales volatility ratio?
σSales /
μSales
σ – is the symbol for the standard deviation
μ – the symbol for the Mean (or average).
What is the degree of operating leverage ratio?
%{change}EBIT /
%{change}Sales
What is the long-term debt to equity ratio?
(Long term debt + deferred tax liabilities) /
Total equity
What is the total debt-to-total invested capital ratio
(current liabilities + long term debt) / (Total liabilities + total capital)
What is the total debt-to-total assets ratio
(Current liabilities + LT Debt) /
Total assets
What is the interest coverage ratio?
Earnings before interest and taxes (EBIT) /
Interest expense
What is the operating cash flow ratio?
OCF /
Current liabilities
What is the operating cash flow to long term debt ratio?
OCF /
Book value of LT debt + PV of lease obligations
What is the operating cash flow to total debt ratio?
OCF /
Total LT debt + Current interest bearing liabilities