Flashcards in Ratios And Calculations For Aud Deck (15):

0

## Return on Assets, equation

### Return on assets = net income/assets

1

## Return on equity, equation

### Return on equity = net income/equity

2

## Working capital, equation

### Working capital = current assets - current liabilities

3

## Current ratio, equation

### Current ratio = current assets/current liabilities

4

## Quick ratio, equation

### Quick ratio = quick assets/current liabilities

5

## Quick assets 3

###
1 cash

2 A/R

3 marketable securities

6

## Accounts receivable turnover ratio, equation

### Accounts receivable turnover = sales/accounts receivable

7

## Inventory turnover ratio, equation

### Inventory turnover = cost of goods sold/inventory

8

## Total asset turnover, equation

### Total asset turnover = sales/total assets

9

## Gross margin percentage, equation

### Gross margin percentage = gross margin/sales

10

## Net operating margin percentage, equation

### Net operating margin % = operating income/sales

11

## Times interest earned, equation

### Times interest earned = operating income/interest expense

12

## Total debt to equity percentage, equation

### Total debt to equity percentage = total debt/owner's equity

13

## Total debt (in the total debt to equity percentage)

### Total debt = total current liabilities + long term debt

14