Tuesday, April 26, 2011

FINANTIAL EQUATIONS

1Current ratio= CA / CL
2Quick ratio (Acid test) = (CA -I)/CL
3Cash ratio= Cash / CL
4Total asset turnover = Sales / TA
5Inventory turnover = CGS / Inventory
6Receviable turnover = Sales / AR
7Total dept ratio = (TA - TE) / TA
8Debt-equity ratio = total dept / total equity
9Equity multiplier = TA / Total equity
10Times interest earned-TIE (Interest coverage ratio)= EBIT / Interest

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