Questions And Answers|Latest Update
Heteroskedasticity When two variables are considered unequal
Return on Equity Net Income/Owners Equity
Debt to Equity Average Total Liabilities/Average Total Equity
Current Ratio Current Assets/Current Liabilities
Cash Conversion Cycle Days Inventory+Average collection period-Days purchases
outstanding
Days Inventory 1. Average Inventory/COGS/365
2. 365/Inventory Turnover
Interest Coverage Ratio EBIT/Interest Expense
Times Interest Earned EBIT/Interest Expense
, HBX Accounting/Economics/Analytics
Questions And Answers|Latest Update
Current Ratio Current Assets/Current Liabilities
Days Purchases Outstanding 1. Average Accounts Payable/Annual credit purchases/365
2. Average Accounts Payable/COGS/365
3. 365/Accounts Payable Turnover
Accounts Receivable Turnover Credit Sales/Average Accounts Receivable
Accounts Payable Turnover 1. Credit Purchases/Average Accounts Payable
2. COGS/Average Accounts Payable
Gross Profit Margin Gross Profit/Sales
Quick Ratio Current Assets-Inventory/Current Liabilities
Inventory Turnover COGS/Average Inventory
Debt to Equity Average Total Liabilities/Average Total Equity