credit ratios

credit ratios - VIRGINIA COMMONWEALTH UNIVERSITY School of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: VIRGINIA COMMONWEALTH UNIVERSITY School of Business Department of Management Professor Krug MGMT 434 - Strategic Management Financial Ratios for Evaluating a Business Short-Term Liquidity Ratios (Round to two decimal points) 1. Current Ratio Current Assets Current Liabilities 2. Quick Ratio (Cash + Marketable Securities + Short-Term Receivables) 1 Current Liabilities Long-Term Liquidity Ratios (Round to two decimal points) 3. Total Liabilities Ratio Total Liabilities Shareholders Equity 4. Short-Term Liabilities Ratio Current Liabilities Shareholders Equity 5. Long-Term Liabilities Ratio Long-Term Liabilities 2 Shareholders Equity Profitability Ratios (Show % value rounded to two decimal points) 6. Gross Margin (%) Net Sales Less Cost-of-Goods-Sold x 100 Net Sales (Revenues) 3 7. Profit Margin (%) Profit after Tax (PAT) x 100 Net Sales (Revenues) 8. Net Income % Net Sales Net Income x 100 Net Sales (Revenues) 1 1 Do not include long-term receivables in the current or quick ratio. Do not include long-term receivables in the current or quick ratio....
View Full Document

This note was uploaded on 12/01/2009 for the course MGMT 12233 taught by Professor Krug during the Spring '09 term at VCU.

Page1 / 2

credit ratios - VIRGINIA COMMONWEALTH UNIVERSITY School of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online