3610 Ratios Flashcards
Profit margin on sales
net income/ net sales
= net sales-COGS / net sales
Return on assets - ROA
net income / ave total assets
= net sales-cogs / ave total assets
Price-earnings ratio
market price per share / earnings per share
Payout ratio
cash dividends declared/ NI
=cash dividends/ net sales- COGS
Debt to asset
total liabilities / total assets
times interest earned
(NI+ income tax expense +interest expense ) / interest expense
accounts receivable turnover
net sales/ average net accounts receivable
inventory turnover
cogs/ average inventory
asset turnover
net sales/ ave total assets
current ratio
current assets/ current liabilities
quick ratio
cash + short term investments + accounts receivable /current liabilities
free cash flow
net cash provided by operating activities - capital expenditures -cash dividents paid
