Financial Ratios (Word Scramble)

1. Current assets minus current liabilities is _________ capital.

2. Current assets divided by current liabilities is the __________ ratio.

3. Cost of goods sold divided by average inventory is the inventory ______________.

4. Net ______ sales divided by accounts receivable is the receivables turnover ratio.

5. Days sales in accounts receivable is 365 divided by the ____________ turnover ratio.

6. This is excluded from the current assets when calculating the quick ratio.

7. Another name for the quick ratio is the ______ test ratio.

8. _________ analysis results in all income statement amounts expressed as a percentage of net sales.

9. __________-size balance sheets show all amounts as a percentage of total assets.

10. ____________ analysis results in amounts expressed as a percentage of an earlier, base year.

11. The debt to equity ratio compares a corporation's ____________ to its stockholders' equity.

12. When dividing income statement amounts by balance sheet amounts, it is logical to use an ___________ of the balance sheet amounts.

13. Financial ratios are part of financial statement ___________.

14. The current ratio and the quick ratio are indicators of a company's ___________.

15. The profit margin ratio and the return on assets are indicators of a company's ____________.

16. A very large amount of debt in relation to the amount of assets indicates that a company is highly _______________.

17. Vertical analysis is associated with __________-size financial statements.

18. Horizontal analysis is associated with _______ analysis.

19. The receivables ______________ ratio is the amount of net credit sales divided by the average amount of accounts receivable.

20. Accountants calculate the inventory turnover ratio by dividing the ______ of goods sold by the average inventory.