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9 Cards in this Set
- Front
- Back
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Earnings per share |
Net income / average number of common shares outstanding |
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Gross profit ratio |
Sales cost of sales / sales |
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Quick ratio |
(Total current assets - inventory-prepaid expenses)/current liabilities |
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What does the accounts receivable turnover ratio measure? |
Measures how many times a business can turn its accounts receivable in to cash |
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Accounts Receivable Turnover Ratio |
Net credit sales/avg accounts receivable |
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What does asset turnover ratio measure? Provide equation. |
Measures a company's ability to generate sales from its assets Net sales/avg total assets |
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What does gross margin ratio measure? Provide equation. |
Measures how profitable a company sells its inventory or merchandise gross margin / net sales |
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What does inventory turnover ratio measure? Provide equation. |
Measures how many times average inventory is sold during a period COGS/avg inventory |
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Describe days receivable ratio and provide equation |
How long it takes the company to collect payments from clients (avg gross receivables/annual net sales) /365 |
