Ratios - 3 Cash Conversion Cycle Day’s Inventory Day’s...

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http://websites.swlearning.com/cgi-wadsworth/course_products_wp.pl? fid=M20b&flag=student&product_isbn_issn=9780324655681&disciplinenumber=41 4 Ratios: Liquidity 1. Current Ratio : Current Assets/Current Liabilities Asset Management 1. Day’s Inventory : Inventory/Sales * 365 or 365/Inventory Turnover Inventory Turnover : Sales/Inventory 2. Day’s Payable : AP/Sales*365 or 365/AP Turnover AP Turnover : Sales/Accounts Payable
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Unformatted text preview: 3. Cash Conversion Cycle : Day’s Inventory + Day’s Receivable – Days Payables 4. Total Asset Turnover: Sales/Total Assets Debt Management 1. Debt/Equity Ratio : Total Liabilities/Total Equity 2. Equity Multiplier : Total Assets/Total Equity Profitability 1. Profit Margin : Net Income/Sales 2. Return on Assets : Net Income/Total Assets 3. Return on Equity : Net Income/Common Equity...
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