Ratios- Formulas Flashcards
(20 cards)
Current ratio
Current assets / current liabilities
Quick ratio
Quick assets / current liabilities
Quick assets =
Cash & equivalents +
Marketable securities +
Accounts receivable
AKA Acid test ratio
Accounts receivable turnover
Net credit sales / Average AR
Inventory turnover
COGS /
Average inventory balance
Total asset turnover
Net sales / Average total assets
Working capital
Current assets - current liabilities
Equity ratio
Total equity / Total assets
Solvency ratio
Operating margin
Operating income / net sales
Return on equity
Net income / shareholder’s equity
Net profit margin
Net income / revenue
Return on operating assets
Net income / operating assets
Turnover on operating assets
Sales / operating assets
Debt to equity ratio
Total liabilities /
total shareholder equity
Times interest earned ratio
EBIT / total interest expense
Days to collect
365 / AR turnover ratio
Days to sell
365 / inventory turnover ratio
Gross margin ratio
Gross margin / sales
X100
Stockholders’ Equity-to-debt
Stockholders’ equity / Total liabilities
Return on average common stockholders’ equity when NO preferred stock is outstanding
Return on average common stockholders’ equity when preferred stock is outstanding
