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11 Cards in this Set
- Front
- Back
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Receivables Turnover Ratio (RTR)
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Net Credit Sales/ Average AR
*Take the average AR of both years, divide by two |
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Average Collected Period
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365 days/RTR
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Inventory Turnover Rate (ITR)
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Cost of G.S./Average Inventory
*take the average Inventory of both years, divide by two |
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Average Days in Inventory
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365 days/ITR
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Current Ratio
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Current Assets/Current Liabilities
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Acid-Test Ratio
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Cash + Current Investments + AR / Current liabilities
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Debt to Equity Ratio
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Total liabilities / Stockholder's Equity
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Times Interest Earned Ratio
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Net income + Interest Expense + Tax expense / Interest expense
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% Increase/Decrease equation
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Current-year amount - Prior-year amount / Prior- year amount
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Horizontal Analysis overview
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Focuses on one company over a period of time (at least two years). Amount and % increase/decrease.
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Vertical Analysis Overview
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Focuses on two companies for one year. Total assets/liabilities = 100%; %increase/decrease dependent on 100%
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