Financial Accounting Ratios

lazboi922's version from 2017-07-16 23:26


Question Answer
Working CapitalCurrent asset - Current liabilities
Current ratioCurrent asset/currrent liabilities
acid-test (quick) ratio(Cash + cash equivalent + marketable securities + net receivbable) / current liabilities
Cash ratio(Cash+cash equivalent+marketable securities)/ current liabilities
accounts receivable turnoverNet sale/ average net receivable
Accounts receivable turnover in daysaverage net sale/ (net sale/365)
inventory turnovercost of goods sold/ average inventory
inventory turnover in daysaverage inventory/ (cost of goods sold/ 365)
operating cycleAR turn over in days - Inventory turnover in days
working capital turnoversales/average working capital
Total asset turn overNet sale/average total asset
net profit marginnet income/ net sale
Return on assetnet income /average total asset
dupoint return on assetNet profit margin x total asset turn over
return on common equity(net income - preferred dividend) / average common equity
Debt to equity ratiototal liability/ common stockholder equity
debt to asset ratiototal liability / total asset
times interest earnedebit/interest
operating cash flowoperating cash flow/ total debt