# Study sets matching "accounting ratios"

Current Ratio

Quick ("Acid Test") Ratio

Interest Coverage (Times Interest Earne…

Return on Assets (ROA)

Current Assets/Current Liabilities... Firm's ability to meet its…

(Cash + Marketable Securities + Accounts Receivable)/Current L…

EBIT/Interest Expense... Indicates the relative protection that…

Net Income/Average Total Assets... Firm's performance in using a…

Current Ratio

Current Assets/Current Liabilities... Firm's ability to meet its…

Quick ("Acid Test") Ratio

(Cash + Marketable Securities + Accounts Receivable)/Current L…

current ratio

quick or acid test

return on equity

return on capital employed

the higher this ratio, the more able a company is to pay back…

an indicator of whether a firm has enough short term assets to…

compares net income to average shareholder equity; measures ho…

possibly better than return on equity because it shows how wel…

current ratio

the higher this ratio, the more able a company is to pay back…

quick or acid test

an indicator of whether a firm has enough short term assets to…

Current Ratio (Up or down?)

Current Ratio

Gross Margin Ratio (Up or down?)

Gross Margin Ratio

^ 2:1 Ratio is good, Used with the Balance Sheet

Explains what a comfortable amount of working capital is, the…

^ is better shows direct profit from sales, Used with the Inco…

It is the excess of Sales of COGS, it generally shows profitab…

Current Ratio (Up or down?)

^ 2:1 Ratio is good, Used with the Balance Sheet

Current Ratio

Explains what a comfortable amount of working capital is, the…

Current Ratio

Acid-test ratio

Accounts receivable turnover

Inventory turnover

Current assets / current liabilities

Cash+ short-term investments + current receivables /current li…

Net Sales / Average accounts receivable, net

COGS / Average inventory

Current Ratio

Current assets / current liabilities

Acid-test ratio

Cash+ short-term investments + current receivables /current li…

Profitability

Managerial Effectiveness

Financial Stability

Cash Flow

%Gross Profit... %Net Profit... %Return on Equity... %Return on Assets

(Days)Turnover of Inventories Rate... (Days)Turnover of A/c Recei…

_:1 Current... _:1 Quick... %Debt... %Equity

%Cash Flow to Revenue... %Cash Flow Adequacy... (Times)Long-term Deb…

Profitability

%Gross Profit... %Net Profit... %Return on Equity... %Return on Assets

Managerial Effectiveness

(Days)Turnover of Inventories Rate... (Days)Turnover of A/c Recei…

Formula for Gross Profit Ratio

prices of goods enough to cover all cos…

compares profit to costs (i.e. 50% ----…

highlights shifts in number and variety…

=(gross profit/net sales)*100

Gross Profit Ratio

Gross Profit Ratio

Gross Profit Ratio

Formula for Gross Profit Ratio

=(gross profit/net sales)*100

prices of goods enough to cover all cos…

Gross Profit Ratio

Current Ratio

Quick ("Acid Test") Ratio

Times Interest Earned Ratio

Return on Assets (ROA)

Current Assets/Current Liabilities... Firm's ability to meet its…

(Cash + Marketable Securities + Accounts Receivable)/Current L…

EBIT/Interest Expense... Indicates the relative protection that…

Net Income/Average Total Assets... Firm's performance in using a…

Current Ratio

Current Assets/Current Liabilities... Firm's ability to meet its…

Quick ("Acid Test") Ratio

(Cash + Marketable Securities + Accounts Receivable)/Current L…

current ratio

quick or acid test

return on equity

return on capital employed

the higher this ratio, the more able a company is to pay back…

an indicator of whether a firm has enough short term assets to…

compares net income to average shareholder equity; measures ho…

possibly better than return on equity because it shows how wel…

current ratio

the higher this ratio, the more able a company is to pay back…

quick or acid test

an indicator of whether a firm has enough short term assets to…

Receivables Turnover Ratio

Average Collection Perios

Inventory Turnover Ratio

Average Days in Inventory

365 days/ Receivables Turnover Ratio

Cost of Goods Sold/ Average Inventory

365 Days/ Inventory Turnover Ratio

Receivables Turnover Ratio

Average Collection Perios

365 days/ Receivables Turnover Ratio

Current Ratio

Quick Ratio

Accts R Turnover

Days Sales in Accts R

Current Assets / Current Liabilities

(Cash + Short-Term Investments + Accts R) / Current Liabilities

Net Credit Sales / Avg Net Accts R

365 / Accts R Turnover

Current Ratio

Current Assets / Current Liabilities

Quick Ratio

(Cash + Short-Term Investments + Accts R) / Current Liabilities

Current Ratio

Quick Ratio

Earnings Per Share

Accounts receivable turnover

Current Assets / Current Liabilties

Current Assets - Inventory - Prepaid Expenses / Current Liabil…

Net Income - Preferred Dividends / Weighted Average Number of…

Credit Sales / Average Accounts Receivable

Current Ratio

Current Assets / Current Liabilties

Quick Ratio

Current Assets - Inventory - Prepaid Expenses / Current Liabil…

Return on Equity Definition

Return on Equity Acceptable Result

Return on Equity Improvement

Net Profit Margin Definition

It measures the return that is made from the owner's investmen…

Percentage, Higher the result the better, Check past performan…

Improve Net Profit, Increase Revenue, Decrease Expenses

It measures the return of the final profit figure generated fr…

Return on Equity Definition

It measures the return that is made from the owner's investmen…

Return on Equity Acceptable Result

Percentage, Higher the result the better, Check past performan…

gross profit margin

Operating Profit Margin

return on capital employed

Return on Shareholders' Funds

Profit Before Interest and Tax... -------------------------------…

Profit available for distribution (Dividends)... ----------------…

gross profit margin

Operating Profit Margin

Profit Before Interest and Tax... -------------------------------…

current ratio

quick or acid test

return on equity

return on capital employed

the higher this ratio, the more able a company is to pay back…

an indicator of whether a firm has enough short term assets to…

compares net income to average shareholder equity; measures ho…

possibly better than return on equity because it shows how wel…

current ratio

the higher this ratio, the more able a company is to pay back…

quick or acid test

an indicator of whether a firm has enough short term assets to…

Working Capital Ratio

Current Ratio

Cash Ratio

Acid-test Ratio

Current Assets - Current Liabilities

Total Current Assets ÷ Total Current Liabilities

(Cash + Cash equivalents) ÷ Total Current Liabilities

(Cash including cash equivalents + Short-term investments + Ne…

Working Capital Ratio

Current Assets - Current Liabilities

Current Ratio

Total Current Assets ÷ Total Current Liabilities

Current ratio

Acid test ratio

A/R turnover

Total asset turnover

Current assets/ current liabilities

(Cash+S.T. Investments+current receivables)/ current liabiliti…

Net sales / A/R, net

Net sales / average total assets

Current ratio

Current assets/ current liabilities

Acid test ratio

(Cash+S.T. Investments+current receivables)/ current liabiliti…