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11 Cards in this Set

  • Front
  • Back
Profit Margin
Net income/ Sales

Indicates company's ability to control costs
Return on Assets
Net Income/Total Assets

Indicates how profitable a company assets are in generating revenue
Du Pont Analysis for Return on Assets
(net income/sales) * (sales/total assets)
Accounts Receivable Turnover
Credit Sales / Accounts Receivables = ____ times
Average Collection Period
Accounts Receivable / Avg.Daily Credit Sales
Inventory Turnover
Sales / Inventory
Days Payable
Accounts Payable / Average Daily COGS
Current Ratio
Current Assets / Current Liabilities

Whether or not a firm has enough assets to cover debt
Quick Ratio
(Current Assets - Inventory)/Curent Liabilities
Debt to Total Assets
Total debt / Total Assets
Times Interest Earned
Income before interest & taxes / Interest Expense