FAR 2 Module 8 Flashcards
gross margin
net sales - COGS/net sales
profit margin
net income/net sales
return on equity
net income/avg total equity
return on assets
net income/avg total assets
operating cash flow ratio
cash flow from operations/ending current liabilities
current ratio
current assets/current liabilities
quick ratio
cash and cash equiv. + ST marketable securities + net receivables - inventory -prepaid expenses/current liabilities
days in inventory
ending inventory/(COGS/365)
days sales in AR
net ending AR/(net sales/365)
days of payables outstanding
ending AP/(COGS/365)
cash conversion cycle
days in inventory + days sales in AR - days of payables outstanding
debt to equity ratio
total liabilities/total equity
total debt ratio
total liabilities/total assets
times interest earned
earnings before interest and taxes/interest expense
OR
income before interest expense and taxes/interest expense
