Module 8: Ratio and Variance Analysis Flashcards
(25 cards)
Operating Cycle
Inventory Conversion Period + Receivable Collection Period
Gross Profit Margin
Sales (net) *How much profit the company made after dealing with the expenses from selling the inventory
Profit Margin
Sales (net)
*How much of the sales ends up in net income after dealing with the expenses
Return on Sales
Sales (net) *How much of our revenue is turned into operating income, indicating how efficiently we generate profit from our sales.
Return on Asset
Average Total Assets
*Measures how much income our assets are generating
DuPont return on assets
Profit Margin x Asset Turnover
*How well a company uses its assets to make money
Return on Equity
Average Total Equity
*To measure how effective a company is on using money from shareholders to make income
Operating Cash Flow Ration
Current Liabilities
Current Ratio
Current Liabilities
Quick Ratio
Current Liabilities
Accounts Receivable Turnover
Average Accounts Receivable
Days in Sales in Accounts Receivable
Sales (net) / 365
Inventory Turnover
COGS
———————-
Average Inventory
Days in Inventory
COGS / 365
Accounts Payable Turnover
Average accounts payable
Days of Payables Outstanding
COGS / 365
Cash Conversion cycle
Days sales in AR + Days in inventory - Days of payable outstanding
Debt-to-Equity
Total equity
Total Debt Ratio
Total assets
Equity Multiplier
Total equity
Times Interest Earned
interest expense
Earnings per Share
WACSO
Price to earnings ratio
Basic EPS
Dividend Payout
Net income
