Accounting 101 ratios

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Last updated 11:47 PM on 6/26/26
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10 Terms

1
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return on assets ratio

increase good

2
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debt ratio

decrease good

3
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profit margin ratio

increase good

4
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current ratio

over 1.0 good

5
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gross profit

net sales - cost of goods sold

6
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acid-test ratio

over 1.0 good

7
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gross margin ratio

increase good

8
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inventory turnover

cost of goods sold

(beg. Inv + end inv /2)

increase good

9
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day’s sales in inventory

(ending inventory/cost of goods sold) x 365

10
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day’s sales uncollected

decrease good