Unit-15 Analysis of financial Statement

Formula-based vocabulary flashcards for Financial Statement Analysis, including technical ratios and calculations derived from the lecture notes.

Current Ratio

$$\frac{\text{Current Assets}}{\text{Current liability}}$$

Quick Ratio

$$\frac{\text{Quick Assets}}{\text{Current liability}}$$

Fixed Assets turnover Ratio

$$\frac{\text{Sales}}{\text{Fixed Assets}}$$

Total Assets turnover Ratio

$$\frac{\text{Sales}}{\text{Total Assets}}$$

Debtors turnover Ratio

$\frac{\text{Sales}}{\text{Debtors}}$ or $\frac{\text{Credit Sules}}{\text{Avg Debtors}}$

Inventory turnover Ratio

$\frac{\text{Sales}}{\text{Inventory}}$ or $\frac{\text{Cost of goods sold}}{\text{Average Inventor}}$

Cost of goods sold (COGS)

$$\text{Sales} - \text{Gross Profit}$$

Debt Equity Ratio

$$\frac{\text{Debt}}{\text{Equity}}$$