Ratios Flashcards by calvin leung

Q

Debt to quity ratio

A

Total liabilities/ owner’s equity

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Q

Current ratio formula

A

Current assets/ current liabilities

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Q

Gross profit ratio

A

Gross profit/ sales

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Q

Net profit ratio

A

Net profit/sales

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Q

Return on equity ratio

A

Net profit/ total equity

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Q

Expense ratio

A

Total expenses/ sales

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Q

Accounts receivable turnover ratio

A

Sales/ accounts receivable

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