financial ratios Flashcards
(15 cards)
1
Q
current ratio
A
current assets/current liabilities
2
Q
debt to equity ratio
A
total liabilities/total equities
3
Q
gross profit ratio
A
gross profit/sales x 100
4
Q
net profit ratio
A
net profit/sales x 100
5
Q
return on equity ratio
A
net profit/total equity x 100
6
Q
expense ratio
A
total expenses/sales x 100
7
Q
accounts receivable turnover ratio
A
sales/accounts receivable
365/answer
8
Q
gross profit
A
sales - COGS
9
Q
COGS
A
(opening stock + purchases) - closing stock
10
Q
net profit
A
gross profit - expenses
11
Q
owners equity
A
assets-liabilities
12
Q
working capital
A
current assets - current liabilities
13
Q
assets
A
liabilities + owners equity
14
Q
liabilities
A
assets - owners equity
15
Q
closing balance
A
(opening balance + cash receipts) - cash payments –> becomes opening balance for the following month
