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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

Owners' equity (in the total debt to equity percentage)

Owners' equity = common stock + retained earnings