Test 2 Flashcards
Inventory Turnover
Cost of Goods/ Avg Inventory
Avg Days in Inventory
365/ inventory turnover
Activity Ratios
Dealing with Assets( asset turnover, receivables turnover, ave=g collection, inventory turnover, average days in inventory
Profitability
Understanding profitability ( profit margin on sales, return on assets, return on equity,
Dupont
Profit Margin ( net income / net sales)
Asset Turnover ( Net Sales / Avg Assets)
Equity Mulitplier ( avg total asset / avg total equity)
Leverage Ratio
How stable a company ( equity multiplier)
Equity Multiplier
Avg Total Asset/ Avg Total Equity
Receivable Turnovers
Net Sales/Avg Net AR
Avg Collection
365/ Receivable Turnover
Asset Turnover
Net Sales/ Avg Total Assets
Profit Margin On Sales
Net Income/ Net Sales
Return on Assets
Net Income/ Avg Total Asset
Return on Equity
Net Income/ Avg Shareholders
Liquidity Ratios
Current Ratio
Quick Ratio
Current Ratio
Current Asset/ Current Liabilities
