Financial Ratios and Their Definitions, Quizzes of Financial Accounting

Download Financial Ratios and Their Definitions and more Quizzes Financial Accounting in PDF only on Docsity! TERM 1 Working Capital DEFINITION 1 Current assets - current liabilities TERM 2 Current Ratio DEFINITION 2 Current assets / current liability TERM 3 quick ratio DEFINITION 3 (Current assets - inventory - prepaid asset) / current liability TERM 4 ratio of cash flow from operations to current liabilities DEFINITION 4 (Net cash provided by operating activities) / average current liabilities TERM 5 A/R Turnover Ratio DEFINITION 5 Net credit sales / avg Accts. Receivable TERM 6 # Days Sales in receivables DEFINITION 6 365/ Accts Receivable Ratio TERM 7 Inventory Turnover Ratio DEFINITION 7 COGS/ Avg Inventory TERM 8 # Days Inventory held before sales DEFINITION 8 365 / Inventory Turnover TERM 9 Cash to cash operating cycle ratio DEFINITION 9 # days in inventory + number of days in receivables TERM 10 Debt to equity DEFINITION 10 total liabilities / total stockholder's equity