Financial ratios. there are no universally accepted definitions of financial ratios, but some of the following ratios make no sense at all. substitute correct definitions. (lo4-3) a. debt-equity ratio = long-term debt/(long-term debt + equity) b. return on equity = net income/average equity c. operating profit margin = after-tax operating income/sales d. inventory turnover = total sales/average inventory e. current ratio = current liabilities/current assets f. average collection period = sales/(average receivables/365) g. quick ratio = (cash + marketable securities + receivables)/current liabilities