Home
Flashcards
Preview
financial ratios
The flashcards below were created by user
kelc0104
on
FreezingBlue Flashcards
.
Home
Mobile
Quiz
liquidity ratios
current ratio, quick ratio
current ratio
want a ratio above one, current assets/current liabilities
quick ratio
less liquid because it does not include inventory. current assets-inventory/current liabilities
working capital ratios
days sales outstanding, aging of accounts receivable, inventory turnover
days of sales outstanding
annual revenue/365 = average revenue per day. accounts receivable/average revenue per day = days sales outstanding.
aging of accounts receivable
listing by category of how long the company has been waiting for its customers to pay bills
inventory turnover
cost of goods sold/average inventory
gross margin
gross profit/revenues
operating margin
operating income/revenue
net margin
net income/revenues
return on assets
net income/assets
return on equity
net income/stock equity = return on equity
debt/equity
debt over equity
interest coverage ratio
operating earnings (EBIT) / interest expense
Author
kelc0104
ID
239038
Card Set
financial ratios
Description
huhc
Updated
2013-10-06T23:58:09Z
Show Answers
n
Home
Flashcards
Preview