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Financial Accounting Ratios

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libehili's version from 2016-08-15 22:30

Section

Question Answer
Debt RatioTotal liablities/Total assets
Current ratiocurrent asset/current liabilities
Acid-test (quick) ratio(Cash+ST investments+net current receivables)/(Total current liabilities)
Receivable TurnoverAnnual net sales/Average net receivables
Days' sales in receivables365/Receivables Turnover
Gross Profit PercentageGross Profit/Net sales revenue
Inventory turnoverCOGS/Average Inventory
Average holding period365/Inventory Turnover
AP turnoverCOGS/Average accounts payable
AP Period365/AP turnover
Operating cycleDays sales in receivables (collection period) + Average inventory holding period - AP period
Asset Turnover ratioNet sales/Average total assets
Return on assets ratio (ROA)(Net income+interest expense)/Average total assets
Times interest earned (interest coverage ratio)Operating income/interest expense
memorize