Match each ratio or percentage with its computation. Ratios or Percentages 1. Net profit margin 2. Inventory

Question:

Match each ratio or percentage with its computation.
Ratios or Percentages
1. Net profit margin
2. Inventory turnover ratio
3. Average days to collect receivables
4. Dividend yield ratio
5. Return on equity
6. Current ratio
7. Debt-to-equity ratio
8. Price/earnings ratio
9. Financial leverage percentage
10. Receivable turnover ratio
11. Average days to sell inventory
12. Earnings per share
13. Return on assets
14. Quick ratio
15. Times interest earned ratio
16. Cash coverage ratio
17. Fixed asset turnover
Definitions
A.
Net Income ÷ Net Sales Revenue
B. Days in Year ÷ Receivable Turnover Ratio
C. Net Income ÷ Average Total Stockholders' Equity
D. Net Income ÷ Weighted Average Number of Common Shares Outstanding
E. Return on Equity - Return on Assets
F. (Cash & Cash Equivalents + Net Accounts Receivable + Marketable Securities) ÷ Current Liabilities
G. Current Assets ÷ Current Liabilities
H. Cost of Goods Sold ÷ Average Inventory
I. Net Credit Sales ÷ Average Net Receivables
J. Days in Year ÷ Inventory turnover ratio
K. Total Liabilities ÷ Total Stockholders' Equity
L. Dividends per Share ÷ Market Price per Share
M. Market Price per Share ÷ Earnings per Share
N. Net Income ÷ Average Total Assets
O. Cash Flows from Operating Activities ÷ Interest Paid
P. Net Sales Revenue ÷ Average Net Fixed Assets
Q. (Net Income + Interest Expense + Income Tax Expense) ÷ Interest Expense
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally.    Inventory Turnover Ratio FormulaWhere,...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  answer-question

Financial Accounting

ISBN: 978-1259222139

9th edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

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