Reading 15 - Inventories Flashcards
current ratio
current assets / current liabilities
quick ratio
(cash + short term marketable investments + receivables) / current liabilities
cash ratio
(cash + short term marketable investments) / current liabilities
defensive interval ratio
(cash + short term marketable investments + receivables) / daily cash expenditure
receivables turnover ratio
total revenue / average receivables
days of sales outstanding (DSO)
number of days in period / receivables turnover ratio
inventory turnover ratio
cogs / average inventory
days of inventory on hand (DOH)
number of days in period / inventory turnover ratio
payables turnover ratio
purchases / average trade payables
number of days of payables
number of days in period / payables turnover ratio
cash conversion cycle (net operating cycle)
DOH + DSO - Number of days of payables
working capital turnover ratio
total revenue / average working capital
fixed asset turnover ratio
total revenue / average net fixed assets
total asset turnover ratio
total revenue / average total assets
gross profit margin
gross profit / total revenue
operating profit margin
operating profit / total revenue
pretax margin
earnings before tax but after interest / total revenue
net profit margin
net income / total revenue
operating return on assets
operating income / average total assets
return on assets
net income / average total assets
return on equity
net income / average shareholder’s equity
return on total capital
EBIT / (interest bearing debt + shareholder’s equity)
return on common equity
(net income - preferred dividends) / average common shareholder’s equity
tax burden
net income / earnings before taxes
