1
Q
gross profit ratio
A
gross profit
—————- x 100%
net sales
2
Q
net profit ratio
A
net profit
————- x100%
net sales
3
Q
return on shareholders equity (ROE)
A
net profit
—————— x 100%
avg SE equity
4
Q
return on total assets (ROI)
A
net profit
——————— x100%
avg total assets
5
Q
inventory turnover ratio & average inventory holding period
A
cost of sales
——————-
avg inventory
365 days
————————-
inventory turnover
6
Q
accounts receivable turnover & no. of days to collect accounts receivable
A
net sales
—————-
avg accounts receivable
365 days
—————————
accounts receivable turnover
7
Q
assets turnover ratio
A
net sales
———————
avg total assets
8
Q
current ratio
A
current assets
————————
current liabilities
9
Q
quick ratio
A
current assets - inventory - prepaid expenses
—————————————————————-
current liabilities
bacc
flashcards
Decks in class (2)
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