Financial ratios Flashcards
(20 cards)
Working capital
Current assets - current liabilities
Current ratio
Current assets / current liabilities
Quick ratio
Current assets - inventory / current liabilities
Accounts receivable turnover
Sales / avg accounts receivable
Days sales in accounts receivable
Ending accounts receivable / sales/365
Inventory turnover
COGS / avg inventory
Days in inventory
Ending inventory / COGS/365
Operating cycle
Days sales in accounts receivable + days in inventory
Working capital turnover
Sales / avg working capital
Asset turnover
Sales / avg total assets
Net profit margin
Net income / net sales
Net operating margin percentage
Net operating income / net sales
Gross profit margin
Sales - COGS / sales
Return on assets
Net income / avg total assets
Debt to equity
Total liabilities/ total equity
Total debt ratio
Total liabilities / total assets
COGS
Beg inventory \+purchases = goods available for sale -ending inventory = cost of goods sold
Return on equity
Net income / avg total equity
Earnings per share EPS
Income available to common shareholders / weighted avg common shares outstanding
Times interest earned
Income before interest expense & taxes / interest expense
