→ Ratios Exam → Start Learning / Download MP3 Flashcards

start learning

Question		Answer
Return on assets ROA start learning		net income divided by total assets
Asset turnover start learning		net sales divided by total assets avarage
Average payment period (in days) start learning		avarage accounts payable divided by (cost of good sold divided by365days)
Share price start learning		market price times number of shares divided by number of shares
EPS start learning		net income divided by number of shares
P/E start learning		share price divided by EPS
Times interest earned start learning		EBIT divided by interest expense
net working capital to total assets start learning		current assets minus current liabilities divided by total assets
current ratio start learning		current assets divided by current liabilities
Internal rate of return start learning		values of net cash flow
net present value start learning		NPV = tax, then net cash flow values, and we add initial investment

Ratios exam