CFA Level 1 Financial Ratios Questions And Answers With Verified Solutions 100% Correct Rated A+

CFA Level 1 Financial Ratios Questions
And Answers With Verified Solutions
100% Correct Rated A+
Inventory TO - ANSWER✔✔COGs / Average Inventory


DOH - ANSWER✔✔365 / (Inventory TO)


Receivables TO - ANSWER✔✔Revenue / Avg. Receivables


DSO - ANSWER✔✔365 / Receivables TO


Payables TO - ANSWER✔✔Purchases / Avg. trade payables


Days payables - ANSWER✔✔365 / Payables TO


Working capital TO - ANSWER✔✔Revenue / Avg. Working Capital


Fixed Asset TO - ANSWER✔✔Revenue / Avg. Net Fixed Assets


Total Asset TO - ANSWER✔✔Revenue / Avg. Total Assets


Activity ratios - ANSWER✔✔Inventory TO
DOH
Receivables TO

, DSO
Payables TO
Days Payables
Working capital TO
Fixed asset TO
Total Asset TO


Cash conversion cycle - ANSWER✔✔DOH + DSO - Days payables


Liquidity ratios - ANSWER✔✔Current ratio
Quick ratio
Cash ratio
Defensive interval ratio
Cash conversion cycle


Current - ANSWER✔✔Current assets / current liabilities


Quick - ANSWER✔✔Cash + mkt securities + receivables / current liabilities


Cash - ANSWER✔✔Cash + Mkt securities / current liabilities


Defensive interval - ANSWER✔✔Cash + Mkt securities + receivables / Daily cash
expenditures


Solvency ratios - ANSWER✔✔Debt-to-assets ratio