Financial Analysis Techniques[1]

Exhibit 7-9 Definitions of Commonly Used Activity Ratios

|Activity Ratios |Numerator |Denominator |
|Inventory turnover |Cost of goods sold |Average inventory |
|Days of inventory on hand (DOH) |Number of days in period |Inventory turnover |
|Receivables turnover |Revenue |Average receivables |
|Days of sales outstanding (DSO) |Number of days in period |Receivables turnover |
|Payables turnover |Purchases |Average trade payables |
|Number of days of payables |Number of days in period |Payables turnover |
|Working capital turnover |Revenue |Average working capital |
|Fixed asset turnover |Revenue |Average net fixed assets |
|Total asset turnover |Revenue |Average total assets |

Exhibit 7-10 Definitions of Commonly Used Liquidity Ratios

|Liquidity Ratios |Numerator |Denominator |
|Current ratio |Current assets |Current liabilities |
|Quick ratio