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Key Financial Ratios and Their Applications in Financial Accounting

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Introduction to Ratios

Ratios: Working Capital and the Current Ratio

Ratios: Quick (Acid Test) 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: Profit Margin

Ratios: Earnings Per Share (EPS)

Ratios: Price-Earnings Ratio (PE Ratio)