Test 1 - Formulas Flashcards
1
Q
Working Capital
A
=Current Assets-Current Liabilities
2
Q
Current Ratio
A
=Current Assets/Current Liabilities
3
Q
Quick Ratio
A
=(Current Assets-Inventories-Prepaid Expenses)/Current Liabilities
4
Q
Inventory Turnover
A
=COGS/Avg. Inventory
5
Q
Average Inventory
A
=(Inv from current balance sheet+Inv from previous balance sheet)/2
6
Q
Asset Turnover
A
=Sales/Total Assets
7
Q
GMROII
A
=Total GM/Avg Inventory
8
Q
% Gross Margin
A
Gross Margin/Net Sales
9
Q
Net Profit Margin
A
=Net Income/Net Sales
10
Q
Return on Assets
A
=Net Income/Total Assets
11
Q
Return on Equity
A
=Net Income/Shareholders’ Equity
12
Q
Financial Leverage
A
=Assets/Owner’s Equity
13
Q
Net Assets
A
=Total Assets-Current Liabilities
14
Q
DSO
A
=Accounts Receivable/Sales*365
15
Q
DPO
A
=Accounts Payable/COGS*365
