Accounting Ratios
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Ratio Analysis
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11 Terms
Current Ratio
current assets ÷ current liabilities
Acid Test Ratio
(Cash + short term investments + current receivables) ÷ current liabilities
Days' Sales Uncollected
accounts receivable, net ÷ net sales × 365
Inventory Turnover
cost of goods sold ÷ average inventory
Days' Sales in Inventory
ending inventory ÷ cost of goods sold × 365
Debt-to-Equity Ratio
total liabilities ÷ total equity
Times Interest Earned
income before interest expense and income taxes ÷ interest expense
Profit Margin Ratio
net income ÷ net sales
Total Asset Turnover
net sales ÷ average totaled assets
Return on Total Assets
net income ÷ average total assets
Return on Equity
net income ÷ average total equity
Note 
Flashcards (24)