Cheat Sheet FM1 - Activity Ratios Receivables Turnover Days...

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Activity Ratios Receivables Turnover =Annual Sales/Average Receivables Days of Sale (Receivable) outstanding (DSO) =365/Receivables Turnover Inventory Turnover =COGS/Average Inventory =Sales/Average Inventory (if COGS is not provided Days of Inventory Turnover in Hand =365/Inventory Turnover Payable Turnover =Purchases/Average Payables Days of Payables =365/Payable Turnover Total Asset Turnover ratio =Revenue/Average Total Assets Fixed Asset Turnover ratio =Revenue/Average net fixed Assets Working Capital =Current Assets-Current Liabilities Working Capital Turnover ratio =Revenue/Average Working Capital Liquidity Ratios Current Ratio =Current Assets/Current Liabilities Quick (Acid Test) Ratio =(Cash +Marketable Securities +Receivables)/Current Liabilities Cash Ratio =(Cash + Marketable Securities)/Current Liabilities Defensive Interval =(Cash +Marketable Securities +Receivables)/Average Daily Expenses Operating Cycle =(Days Inventory on Hand)+(Days Sales or Receivable Outstanding) Cash Conversion Cycle =(Days Sales Outstanding)+(Days Inventory on Hand)-(No. of Days of Payables) Solvency Ratios Debt to Equity =Total Debt/Total Shareholders’ Equity Debt to Capital =Total Debt/(Total Debt +Shareholders’ Equity) Debt Ratio or Debt to Asset =Total Debt/Total Assets Financial Leverage or Leverage Ratio =Average Assets/Average Equity Times Interest Earned (TIE) or Interest Coverage Fixed Charge Coverage
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