OMSA MGT 8803 Exam 1 Ratios With
Correct Answers!!
Return on Assets CORRECT ANSWERS net income/average total assets
Profit Margin CORRECT ANSWERS net income/sales revenue
Asset Turnover CORRECT ANSWERS sales revenue/average total assets
Dupont Analysis CORRECT ANSWERS ROA = Profit Margin * Assets Turnover
Return on Equity CORRECT ANSWERS net income/average shareholders' equity
ROE Analysis CORRECT ANSWERS ROE = Profit Margin * Assets Turnover * Equity
Multiplier
Equity Multiplier CORRECT ANSWERS (liabilities + owners' equity)/owners' equity
Working Capital CORRECT ANSWERS current assets - current liabilities
Current Ratio CORRECT ANSWERS current assets/current liabilities
Quick Ratio CORRECT ANSWERS (cash + marketable securities + receivables) /
current liabilities
Debt-To-Equity CORRECT ANSWERS total liabilities/total equity
Receivables Turnover CORRECT ANSWERS sales revenue/average a/r
Average Collection Period CORRECT ANSWERS 365/a/r turnover
Inventory Turnover CORRECT ANSWERS cogs/average inventory
Average Days Inventory Held CORRECT ANSWERS 365/inventory turnover
Payables Turnover CORRECT ANSWERS cogs/average a/p
Average Days Payables CORRECT ANSWERS 365/a/p turnover
Days in Financing CORRECT ANSWERS days in inventory + days in a/r - days in
payables
Methods to Improve Cash Conversion Cycle CORRECT ANSWERS reduce days in
inventory; reduce days in a/r; increase days in a/p
Correct Answers!!
Return on Assets CORRECT ANSWERS net income/average total assets
Profit Margin CORRECT ANSWERS net income/sales revenue
Asset Turnover CORRECT ANSWERS sales revenue/average total assets
Dupont Analysis CORRECT ANSWERS ROA = Profit Margin * Assets Turnover
Return on Equity CORRECT ANSWERS net income/average shareholders' equity
ROE Analysis CORRECT ANSWERS ROE = Profit Margin * Assets Turnover * Equity
Multiplier
Equity Multiplier CORRECT ANSWERS (liabilities + owners' equity)/owners' equity
Working Capital CORRECT ANSWERS current assets - current liabilities
Current Ratio CORRECT ANSWERS current assets/current liabilities
Quick Ratio CORRECT ANSWERS (cash + marketable securities + receivables) /
current liabilities
Debt-To-Equity CORRECT ANSWERS total liabilities/total equity
Receivables Turnover CORRECT ANSWERS sales revenue/average a/r
Average Collection Period CORRECT ANSWERS 365/a/r turnover
Inventory Turnover CORRECT ANSWERS cogs/average inventory
Average Days Inventory Held CORRECT ANSWERS 365/inventory turnover
Payables Turnover CORRECT ANSWERS cogs/average a/p
Average Days Payables CORRECT ANSWERS 365/a/p turnover
Days in Financing CORRECT ANSWERS days in inventory + days in a/r - days in
payables
Methods to Improve Cash Conversion Cycle CORRECT ANSWERS reduce days in
inventory; reduce days in a/r; increase days in a/p
