RATIO AND VARIANCE ANALYSIS Flashcards
1
Q
__________ has direct relationship with the ratio
A
Numerator
2
Q
________ has an inverse relationship with ratio
A
Denominator
3
Q
Gross profit Margin
A
(Sales - COGS)/ Sales
4
Q
Profit Margin
A
Net Income/Sales
5
Q
Return on Sales
A
EBIT/ Sales
6
Q
Return on Assets
A
Net Income/ Avg total assets
7
Q
Dupoint Return on assets
A
Profit Margin X Asset TO
8
Q
Return on Equity
A
Net Income/ Avg total equity
9
Q
Operating Cash Flow Ratio
A
CF from operations/ CL
10
Q
Current Ratio
A
CA/CL
11
Q
Quick Ratio
A
(Cash+Short term marketable securities + Receivables)/CL
12
Q
Accounts Receivable Turnover
A
Sales/Avg Acc receivable
13
Q
Days Sales in Accounts Receivable
A
Ending Accounts Receivable/ Sales/365
14
Q
Inventory Turnover
A
COGS/Avg Inventory
15
Q
Days in Inventory
A
Ending Inventory/(COGS/365)
