Financial Ratios Flashcards
1
Q
Current Ratio
A
Current Assets/Current Liabilities
2
Q
Cash Ratio
A
Cash/Current Liabilities
3
Q
Quick Ratio
A
(Current Assets-Inventory)/Current Liabilities
4
Q
Total Debt Ratio
A
Debt/Assets
5
Q
Debt to Equity Ratio
A
Debt/Total Equity
6
Q
Asset Multiplier
A
Total Assets/Total Equity
7
Q
Times Interest Earned Ratio
A
EBIT/Interest Expense
8
Q
EBITDA Coverage
A
(EBIT+Depreciation)/Interest Expense
9
Q
Inventory Turnover
A
Cost of Goods Sold/Inventory
10
Q
Receivables Turnover
A
Sales/Accounts Receivable
11
Q
Payable Turnover
A
Cost of Goods Sold/Accounts Payable
12
Q
Days Sales Out Standing
A
(Accounts Receivable x 365)/ Sales
13
Q
Days Payable Outstanding
A
(Accounts Payable x 365)/ Average Purchases
14
Q
Days Inventory Outstanding
A
(Average Inventory x 365)/ Cost of Goods Sold
15
Q
Profit Margin
A
Net Income/Revenue
