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Match each ratio or percentage with its formula by entering the appropriate letter for each numbered item


1. Net profit margin                             A. Net income ÷ Net sales revenue.
2. Inventory turnover ratio                   B. (Net sales revenue - Cost of goods sold) ÷ Net sales revenue.
3. Cash coverage ratio                                     C. Current assets ÷ Current liabilities.
4. Fixed asset turnover                                     D. Cost of goods sold ÷ Average inventory.
5. Capital acquisitions ratio                  E. Net credit sales revenue ÷ Average net receivables.
6. Return on equity                              F. Net cash flows from operating activities ÷ Net income.
7. Current ratio                                    G. Net income ÷ Average number of common shares outstanding.
8. Debt-to-assets ratio                          H. Total liabilities ÷ Total assets.
9. Price/earnings ratio                          I. (Net income + Interest expense + Income tax expense) ÷ Interest expense.
10. Receivables turnover ratio             J. Net cash flows from operating activities ÷ Cash paid for property, plant, and equipment
11. Earnings per share                                     L. Net income ÷ Average total stockholders’ equity.
12. Quality of income ratio                  K. Current market price per share ÷ Earnings per share.
13. Gross profit percentage                  M. Net cash flows from operating activities (before interest and taxes) ÷ Interest paid.
14. Times interest earned                     N. Net sales revenue ÷ Average net fixed assets.
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