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### 20 Cards in this Set

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 Net Profit Percent measures the percentage of each sales dollar left after deducting all expenses ROI NP/NW x 100, measures the percentage return on each dollar invested by the owners ROA NP/TA x 100, measures the efficiency of each dollar of assets used by the firm at producing profits Average Inventory (BI + EI)/2 GAFS = what? BI + P or CGS + EI TO CGS/AI Efficiency Ratios tell us what? how well the manager is using pharmacy resources TO definition annual rate at which inventory is being sold Turn definition analogous to TO, monthly rate at which inventory is being sold, NS/AI Acid Test Ratio (accounts receivable + cash)/CL Quick Ratio (accounts receivable + cash)/CL Net Working Capital NWC = CA - CL Financial position measure the pharmacy's ability to meet all financial liabilities w/o selling or otherwise encumbering its assets Debt to Equity TL/NW x 100 Debt to Equity definition Shows the riskiness of the firm and measures the firm's ability to withstand adversity.The ratio is the most direct measure of a firm's financial position - its ability to meet all of its obligations by using all of its assets with seriously impairing the company's operation Generic dispensing ratio number of generic prescriptions dispensed/ number of all prescriptions dispensed ABPD FE/MIR PBPD project cost/MIR MIR GM % - VE % GMROI GM/AI