# Accounting Ratios Equations

### Description

Accounting Ratios, the equations
Flashcards by Unknown Proxy, updated more than 1 year ago
 Created by Unknown Proxy about 7 years ago
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## Resource summary

 Question Answer Gross Profit Ratios (Gross Profit / Net Sales) * 100 Net Profit Ratio (Net Profit / Net Sales) * 100 Rate of Return on Owners Equity (Net Profit / Average Owners Equity) * 100 Rate of Return on Total Assets ((Net Profit + Interest Expense) / Average Total Assets ) * 100 Current Ratio Current Assets / Current Liabilities Quick Assets Ratio (Cash Assets + Receivables) / Current Liabilities Lincoln Financial Health Ratio ((Net Profit + Depreciation + Amortisation) / Current Liabilities) * 100 Equity Ratio (Owners Equity / Total Assets) * 100 Debt Ratio (Total Liabilities / Total Assets) * 100 Lincoln Debt Ratio (Total Liabilities / (Total Assets - Intangible Assets)) Times Interest Earned ((Net Profit + Interest Expense) / Interest Expense) Accounts Payable Turnover Net Credit Purchases / Average Accounts Payable Accounts Receivable Ratios Net Credit Sales / Average Accounts Receivable Fixed Asset Ratio Net Revenue / Average Fixed Assets Inventory Ratios Cost of Goods Sold / Average Inventories Working Capital Turnover Revenue / Average Working Capital Working Capital Current Assets - Current Liabilities Net Revenue Revenue - Sales Returns Accounting Equation A = L + O.E. + (R-E) Assets = Liabilities + Owners Equity + (Revenue - Expenses) Average of Anything (Beginning - Ending) / 2 Turnover of Inventories Cost of Goods Sold / Average Inventories Turnover of Accounts Receivable Net Credit Sales / Average Accounts Receivable

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