Accounting formulas

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Last updated 2:26 AM on 6/9/26
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9 Terms

1
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Acid test Ratio

Quick Assets/Current Liabilities

2
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Asset turnover formula

Net Sales/ AVG total assets

3
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Debt to total assets

Total Liabilities/ Total Assets

4
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Profit Margin Sales formula

NI / NS

5
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GP %

Gross Profit/Net Sales

6
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EPS formula

Net Income- Pref Dividens/ CS issues - TS shares

7
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Inventory turnover formula

COGS/Avg Inventory

8
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ROA formula

Asset turnover * Profit Margin

9
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Working Ratio

Current Assets/ Current Liab