Financial Ratios

Question	Answer
Current Ratio	Current Assets _______________ Current Liabilities
Gross Profit Ratio	Gross Profit _____________ Sales
Net Profit Ratio	Net Profit ______________ Sales
Return on Equity	Net Profit _______________ Total Equity
Debt to Equity Ratio (Gearing)	Total Liabilities _________________ Total Equity
Expense Ratio	Expenses ______________ Sales
Accounts Receivable Turnover Ratio	365 divided by: Sales ______________ Accounts Receivable
Accounts Receivable Turnover Ratio	365 divided by: Sales ______________ Accounts Receivable
Sales Turnover Ratio	Sales Year 2 - Sales Year 1 _________________________ Sales Year 1
COGS	Opening Stock + Purchases - Closing Stock
Gross Profit	Sales - COGS
Net Profit	Gross Profit - Total Expenses
Balance Sheet Equation	Assets = Liabilities + Owners Equity (A = L + OE)

Resource summary

	Created by Elizabeth Clifford over 11 years ago