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DSST Principles of Finance - Memorize ratios? - Printable Version

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DSST Principles of Finance - Memorize ratios? - mstcrow5429 - 12-09-2007

Will I need to memorize the profitability ratios (profit margin, return on assets, return on equity), asset utilization ratios (receivable turnover, average collection period, inventory turnover, fixed asset turnover, total asset turnover), liquidity ratios (current ratio, quick ratio), and debt utilization ratios (debt to total assets, times interest earned, fixed change coverage)? Or just basic ones, such as the current and quick ratio? I have a financial calculator (HP 10bII), it can do TVM, NPV, IRR/YR, but don't see that it has any built-in ratios. Thanks.


DSST Principles of Finance - Memorize ratios? - loesch - 03-06-2008

Can anyone give me an answer to this question? I am taking the test tommorrow and would love to know if I have to memorize all those ratios.


DSST Principles of Finance - Memorize ratios? - gcalvin - 03-07-2008

Yes, know all those ratios. Review them just before you go in, and then jot them all down on your scratch paper before you begin the exam.

-Gary-