D076 WGU Ratios and Equations GRADED A+

Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by accounts receivable. Average Collection Period (ACP) - An activity ratio found by the number of days in a year (365) divided by AR turnover. Current Ratio - A liquidity ratio found by current assets divided by current liabilities. Current ratio - Which ratio helps an analyst evaluate whether a company can cover its short-term obligations? Debt Ratio - A financing ratio found by total liabilities divided by total assets. Debt-to-equity Ratio - A financing ratios found by total liabilities divided by total equity. Fixed Asset Turnover (FAT) - An activity ratio found by sales divided by fixed assets. Gross Margin - A profitability ratio found by gross profit divided by sales. Inventory Turnover - An activity ratio found by COGS divided by inventory Leverage Ratios - A category of ratios that consider how a firm is financed. Liquidity Ratios - A category of ratios that measure a firm's ability to meet short-term obligations.