gross jprofit jmargin j= jgross jprofit j/ jrevenue
tells jyou jhow jbig jthe jproportion jof jgross jprofit jis j- jANS✓✓-What jis jthe jgross
jprofit jmargin?
Operating jprofit jmargin j= jOperating jincome j/ jrevenue j- jANS✓✓-What jis jthe
joperating jprofit jmargin?
ROA j= jNet jincome j/ javerage jtotal jassets
Tells jyou jhow jmuch jof jnet jincome jis jmade jby jtotal jassets
Tells jyou jhow jefficient ja jcompany juses jits jassets j- jANS✓✓-What jis jthe jreturn
jon jassets?
Return jon jtotal jcapital j= jEBIT j/ jShort jand jlong jdebt jand jEquity
profit jearned jby ja jcompany jusing jboth jits jdebt jand jequity jcapital j- jANS✓✓-
What jis jthe jreturn jon jtotal jcapital?
ROE j= jNet jIncome j/ javerage jtotal jequity j
Tells jyou jhow jefficient ja jcompany jis jusing jits jequity j- jANS✓✓-What jis jthe
jreturn jon jequity?
Return jon jcommon jequity j= j(Net jincome j- jpreferred jdividends) j/ jAverage
jcommon jequity
Common jequity jist jShareholders jequity j- jpreferred jstocks j- jANS✓✓-What jis
jthe jreturn jon jcommon jequity?
Current jratio= jcurrent jassets/current jliabilities
ratio jgreater jthan jone jindicates jpositive jworking jcapital
some janalysts juse j2 jas ja jguide
to jlarge jis jalso jnot jgood, jindicates jproblems jwith jinventory j- jANS✓✓-What jis
jthe jcurrent jratio?
quick jratio j= j(cash j+ jshort jmarketables j+ jreceivables) j/ jcurrent jliabilities
more jconservative j- jANS✓✓-What jis jthe jquick jratio?
, cash jratio j= j(cash j+ jshort jmarketables) j/ jcurrent jliabilities j- jANS✓✓-What jis
jthe jcash jratio?
(Cash j+ jshort-term jmarketables j+ jreceivables) j/ jdaily jcash jexpenditure j- jANS✓
✓-What jis jthe jdefensive jinterval?
Debt jto jequity j= jTotal jdebt j/ jshareholder's jequity
reveals jthe jfirm's jcapital jstructure j- jANS✓✓-What jis jthe jdebt jto jequity
jstructure?
Financial jleverage j= javerage jtotal jassets j/ javerage jtotal jequity
reveals juse jof jall jtypes jof jliabilities j- jANS✓✓-What jis jthe jfinancial jleverage?
Interest jcoverage j= jEBIT j/ jinterest jpayment j- jANS✓✓-What jis jthe jinterest
jcoverage?
Inventory jturnover j= jCOGS j/ javerage jinventory
DOH j= jNumber jof jdays j/ jinventory jturnover
the jlower jthe jbetter j- jANS✓✓-What jis jthe jinventory jturnover jand jthe jdays
jinventory jon jhand?
receivables jturnover j= jrevenue j/ javerage jreceivables
DSO j= jnumber jof jdays j/ jreceivables jturnover
the jsmaller jthe jbetter j- jANS✓✓-What jis jthe jreceivable jturnover jand jthe jdays
jsales joutstanding?
payable jturnover j= jPurchases j(COGS) j/ javerage jpayables
DP j= jnumber jof jdays j/ jpayables jturnover
the jlarger jthe jbetter j- jANS✓✓-What jis jthe jpayables jturnover jand jthe jdays
jpayable?
operating jcycle j= jdays jinventory jon jhand j+ jdays jsales joutstanding
cash jto jcash jcycle j= jDOH j+ jDSO j- jdays jpaybles j- jANS✓✓-What jis jthe
joperating jcycle jand jwhat jis jthe jcash jto jcash jcycle?
Fixed jassets jturnover j= jRevenue j/ javerage jfixed jassets
Total jassets jturnover j= jRevenue j/ javerage jtotal jassets
initially jratio jmay jbe jlow juntil jsales jreach jmature jlevel
newer jassets jmay jlower jratio