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11 Cards in this Set
- Front
- Back
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Profit Margin
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Net income/ Sales
Indicates company's ability to control costs |
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Return on Assets
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Net Income/Total Assets
Indicates how profitable a company assets are in generating revenue |
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Du Pont Analysis for Return on Assets
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(net income/sales) * (sales/total assets)
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Accounts Receivable Turnover
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Credit Sales / Accounts Receivables = ____ times
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Average Collection Period
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Accounts Receivable / Avg.Daily Credit Sales
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Inventory Turnover
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Sales / Inventory
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Days Payable
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Accounts Payable / Average Daily COGS
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Current Ratio
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Current Assets / Current Liabilities
Whether or not a firm has enough assets to cover debt |
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Quick Ratio
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(Current Assets - Inventory)/Curent Liabilities
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Debt to Total Assets
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Total debt / Total Assets
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Times Interest Earned
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Income before interest & taxes / Interest Expense
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