business finance finals Flashcards by Sofia Marie Aglipay | Brainscape

Q

Accounts payable turnover formula

A

Purchases/ Accounts payable

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Q

Time interest earned formula

A

EBIT/ interest

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Q

average age of inventory formula

A

365/ inventory turnover

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Q

Inventory turnover ratio formula

A

COGS/inventory

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Q

Times interest earned ratio formula

A

EBIT/Total interest expense

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Q

Accounts receivable turnover formula

A

Annual credit sales/ Accounts receivable

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Q

Return formula

A

R= Ct+ Pt - P t-1 / P t-1

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Q

Asset

A

Liabilities+ owners equity

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Q

Asset turnover

A

Net sales/ Average total asset

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Q

Return on equity

A

Net income/ Stockholders Equity

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Q

Operating cycle

A

Average collection period/ Average age of inventory

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Q

Working capital

A

Current asset- Current liabilities

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Q

Return on total asset

A

Operating income/ total asset

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Q

Operating profit margin

A

Operating income/ sales

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Q

current ratio

A

Current asset/ current liabilities

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Q

Quick ratio

A

Current asset - inventory/ Current liabilities