Ratios- Liquidity/Solvency and Operational Flashcards
1
Q
What’s the difference between ROA and ROE?
A
-ROA measures operating performance independent of financing while ROE include amount and cost of financing
2
Q
Define the Securitites Defensive Interval Ratio.
A
(Cash + Net Receivables + Marketable Securities) / Average Daily Cash Expenditures
3
Q
What’s the Accounts Receivable Turnover ratio?
A
Net Credit Sales / Avg Receivables
4
Q
What’s the Inventory Turnover ratio?
A
COGS / Avg Inventory
