ratios for accounting

recievables turnover ratio

net credit sales/ average accounts receivable

How often company collects there outstanding accounts receivable?

average collection period

365/ receivable turnover ratio

how many days inventory stays in factory?

allowance ratio

allowance for uncollectable accounts / accounts recievable

how much wont be collected?

inventory turnover ratio

COGS / Average Inventory

how fast company sells/gets new inventory?

gross profit ratio

gross profit / net sales (or sales revenue)

percentage of each sales dollar left after subtracting COGS?

return on assets

NI / Average Total Assets

Profit Margin

NI / NS ( or sales rev)

investment to asset ratio

short term investments + long term investments / total assets

how much of assets are investments?

ROI

investment related gains/losses / avg short term investments + average long term investments

Asset Turnover

Net sales / average total assets

how efficiently a company uses its assets to generate sales revenue?