Horizontal Analysis
Vertical Analysis
Common-sized Statements
Trend Percentages
Discontinued Operations and Extraordinary Items
Introduction to Ratios
Ratios: Earnings Per Share (EPS)
Ratios: Working Capital and the Current Ratio
Ratios: Quick (Acid Test) Ratio
Ratios: Gross Profit Rate
Ratios: Profit Margin
Ratios: Quality of Earnings Ratio
Ratios: Inventory Turnover
Ratios: Average Days in Inventory
Ratios: Accounts Receivable (AR) Turnover
Ratios: Average Collection Period (Days Sales Outstanding)
Ratios: Return on Assets (ROA)
Ratios: Total Asset Turnover
Ratios: Fixed Asset Turnover
Ratios: Profit Margin x Asset Turnover = Return On Assets
Ratios: Accounts Payable Turnover
Ratios: Days Payable Outstanding (DPO)
Ratios: Times Interest Earned (TIE)
Ratios: Debt to Asset Ratio
Ratios: Debt to Equity Ratio
Ratios: Payout Ratio
Ratios: Dividend Yield Ratio
Ratios: Return on Equity (ROE)
Ratios: DuPont Model for Return on Equity (ROE)
Ratios: Free Cash Flow
Ratios: Price-Earnings Ratio (PE Ratio)
Ratios: Book Value per Share of Common Stock
Ratios: Cash to Monthly Cash Expenses
Ratios: Cash Return on Assets
Ratios: Economic Return from Investing
Ratios: Capital Acquisition Ratio
Additional Practice
Ratios Cumulative Problems

Concept #1: Ratios: Accounts Receivable (AR) Turnover

Practice: ABC Company had $200,000 in Net Sales and Gross Profit of $80,000. If AR had a balance of $16,000, what is the AR Turnover ratio?

Additional Problems
If a company has net sales of $500,000; gross sales of $600,000 and an average accounts receivable balance of $100,000 – what is the accounts receivable turnover? a. 3.0 b. 4.0 c. 5.0 d. 6.0
Owl computers had an accounts receivable turnover ratio of 8, net sales of $120,000 and gross sales of $150,000. What was their average balance in the accounts receivable?
During 2014, XYZ Inc. sold merchandise worth $320,000. It has $60,000 of beginning accounts receivables and $70,000 of ending accounts receivables. What is company’s receivable turnover (rounded)? A. 73.00 B. 4.92 C. 11.25 D. 4.09
On December 31, G Company provided the following information:                                                  January 1             December 31 Accounts receivable                     $ 3,600                      $ 4,900 Allowance for doubtful accounts        200                            300 Total revenue                                                                 $38,800 Cash sales                                                                         2,800 G Company’s accounts receivable turnover ratio was: a) 9.7 b) 9.1 c) 9.0 d) 8.5
Beginning accounts receivable were $100,000 and the ending accounts receivable are $130,000. Net sales for the period total $1,265,000. What is the accounts receivable turnover? A.11.00 B.12.00 C.9.73 D.12.65 E.None of the above