D078 RATIOS AND D078 MODULE 1 COMBINED WITH
100% VERIFIED SOLUTIONS!!
-RATIOS / D078
-D078 Module 1
RATIOS / D078
Current Ratio - ANSWER Liquidity of current assets to liabilities.
Quick Ratio - ANSWER Liquidity excluding inventory from current assets.
Accounts Receivable - ANSWER Credit granted to customers, which is recoverable as
cash.
AR Turnover Ratio - ANSWER No. of times accounts receivables are collected in a
year.
Average Collection Period - ANSWER Average no. of days taken to collect receivables.
Inventory Turnover - ANSWER No. of times inventory sold in a year.
Total Asset Turnover - ANSWER Sales generated per dollar of total assets.
Fixed Asset Turnover - ANSWER Sales generated per dollar of fixed assets.
Operating Income Return on Investment (OIROI) - ANSWER Profitability measure of
operating income to total assets.
, Debt Ratio - ANSWER Proportion of assets financed through debt.
Debt-to-Equity Ratio - ANSWER Debt amount per dollar of equity held.
Times Interest Earned (TIE) - ANSWER Operating profit coverage of interest expenses.
Return on Assets (ROA) - ANSWER Net income as a percentage of total assets.
Return on Equity (ROE) - ANSWER Net income as a percentage of owners' equity.
Gross Margin - ANSWER Percentage of revenue after deducting COGS.
Operating Margin - ANSWER Percentage of sales remaining after COGS and expenses.
Credit Sales - ANSWER Sales made on credit, establishing accounts receivable.
COGS (Cost of Goods Sold) - ANSWER Direct costs related to the production of goods.
Liquidity Ratios - ANSWER Measure the ability of a company to meet their short-term
needs.
Profitability Ratios - ANSWER Indicate a firm's ability to generate profit.
Leverage Ratios - ANSWER Indicate the extent to which a company relies on debt
financing.
Efficiency Ratios - ANSWER Measuring the extent to which a firm exploits its assets.
100% VERIFIED SOLUTIONS!!
-RATIOS / D078
-D078 Module 1
RATIOS / D078
Current Ratio - ANSWER Liquidity of current assets to liabilities.
Quick Ratio - ANSWER Liquidity excluding inventory from current assets.
Accounts Receivable - ANSWER Credit granted to customers, which is recoverable as
cash.
AR Turnover Ratio - ANSWER No. of times accounts receivables are collected in a
year.
Average Collection Period - ANSWER Average no. of days taken to collect receivables.
Inventory Turnover - ANSWER No. of times inventory sold in a year.
Total Asset Turnover - ANSWER Sales generated per dollar of total assets.
Fixed Asset Turnover - ANSWER Sales generated per dollar of fixed assets.
Operating Income Return on Investment (OIROI) - ANSWER Profitability measure of
operating income to total assets.
, Debt Ratio - ANSWER Proportion of assets financed through debt.
Debt-to-Equity Ratio - ANSWER Debt amount per dollar of equity held.
Times Interest Earned (TIE) - ANSWER Operating profit coverage of interest expenses.
Return on Assets (ROA) - ANSWER Net income as a percentage of total assets.
Return on Equity (ROE) - ANSWER Net income as a percentage of owners' equity.
Gross Margin - ANSWER Percentage of revenue after deducting COGS.
Operating Margin - ANSWER Percentage of sales remaining after COGS and expenses.
Credit Sales - ANSWER Sales made on credit, establishing accounts receivable.
COGS (Cost of Goods Sold) - ANSWER Direct costs related to the production of goods.
Liquidity Ratios - ANSWER Measure the ability of a company to meet their short-term
needs.
Profitability Ratios - ANSWER Indicate a firm's ability to generate profit.
Leverage Ratios - ANSWER Indicate the extent to which a company relies on debt
financing.
Efficiency Ratios - ANSWER Measuring the extent to which a firm exploits its assets.
