Formulas Flashcards
(18 cards)
1
Q
*GROSS PROFIT MARGIN
A
(NET SALES-COGS)/REVENUE
2
Q
*RETURN ON ASSETS
A
NET INCOME / ASSETS
3
Q
*PROFIT MARGIN
A
NET INCOME / REVENUE (SALES)
4
Q
*ASSET TURNOVER
A
Sales / ASSETS
5
Q
*RETURN ON EQUITY
A
NET INCOME / SHAREHOLDER EQUITY
6
Q
CURRENT RATIO
A
CURRENT A / CURRENT L
7
Q
ROA =
A
PROFIT MARGIN x ASSET TURNOVER
Net Income / Assets
8
Q
Inventory Turnover
A
COGS / Inventory
9
Q
AR Turnover
A
Sales / AR
10
Q
AP Turnover
A
COGS +- Change in inventory / AP
11
Q
Quick Ratio
A
Current Assets - Inventory / Current Liability
12
Q
Days in Inventory
A
365 / Inventory Turnover
13
Q
Days in AR
A
365 / AR Turnover
14
Q
Days in AP
A
365 / AP Turnover
15
Q
Net Operating Cycle
A
Days in Inventory + Days in AR - Days in AP
16
Q
*Operating Profit Margin
A
Net Income from Operations / Sales
17
Q
Leverage Ratio
A
Debt / Equity
18
Q
3 Profitability Ratios
A
ROA, Asset Turnover, Profit Margin
