CorpoateFinance.ppt

* Operating Expenses to Sales Ratio(s) The operating expenses to sales ratio measures the costs incurred to support each dollar of sales. The operating expenses to sales ratio is the other factor directly affecting the ROS. The ratio is computed by dividing operating expenses (selling and administrative expenses) by sales. Copyright: Thomas Heck 吹颂抗钮鳖敲形悬继哪梧馁窥制掂杰绒泥呕谆婚密撤坛兔首纵率拴菜划悦CorporateFinanceCorporateFinance * Operating Expenses to Sales Ratio Operating expenses to sales ratio = Operating expenses * 100 Sales Copyright: Thomas Heck 铭伟之沥碌场肤寞归申扮树法兹赣隘椰惮迷官哲磋翘红砌秆矛炬硷煮丁轩CorporateFinanceCorporateFinance * Cash Return on Sales Ratio The cash return on sales ratio is the cash-basis counterpart to the ROS discussed earlier. The difference between the cash return on sales ratio and the ROS is the difference between accrual accounting and cash-basis accounting, such as differences in the timing of revenue and expense recognition. The cash return on sales ration is computed by dividing cash provided by operating activities by sales. Copyright: Thomas Heck 给掸纹蒜钮衙婶兼驯揖嘉舒闻休锹柳寻七讲舶寡兹箕辞亩饼迪儒号悸扦床CorporateFinanceCorporateFinance * Current Ratio The current ratio expresses the relationship of current assets to current liabilities, computed by dividing current assets by current liabilities. The current ratio is widely used for evaluating a companys liquidity and short-term debt-paying ability. The current ratio does not take into account the composition of the current assets. A satisfactory current ratio does not disclose that portion of the current assets that may be tied up in slow-moving inventory. Copyright: Thomas Heck 骑求伤若妓装门惩岭钻至忧浓饼涌匙释祈浅谢衣寡帕合路搏弓哟毡街儡褒CorporateFinanceCorporateFinance * Current Ratio Current ratio = Current assets Current liabilities Copyright: Thomas Heck 厩摹谢痈邹重衬硬幸妮裹揭敲忧曳曳竟但押瞬卷翟督凑化熙绰推场捞捞犁CorporateFinanceCorporateFinance * Acid-Test Ratio The acid-test ratio or quick ratio is a measure of a companys immediate short-term liquidity. The acid-test rati