FINANCE RATIOS/FORUMLAS

• current ratio = current assets/ current liabilities
• debt to equity ratio = total liabilities / total equity
• gross profit ratio = gross profit / sales x 100
• net profit ratio = net profit / sales x 100
• return on equity ratio = net profit / total equity x 100
• expense ratio = total expenses / total sales x 100
• accounts receivable turnover ratio = sales / accounts receivable, ANSWER divided by 365