Accounting Ratios Flashcards
Memorize Accounting Ratios
1
Q
Debt Ratio
A
Total Liabilities/Total Assets
2
Q
Current Ratio
A
Current Assets/Current Liabilites
3
Q
Return on Sales
A
Net Income/Sales
4
Q
Asset Turnover
A
Sales/Total Assets
5
Q
Return on Equity
A
Net Income/Stockholders Equity
6
Q
Price-Earning Ratio
A
Market Value of Shares/Net Income
7
Q
Return on Equity (DuPont Equation)
A
Profitability x Efficiency x Leverage
8
Q
Profitiability
A
Net Income/Sales
9
Q
Efficiency
A
Sales/Assets
10
Q
Leverage
A
Total Assets/ Stockholders Equity
11
Q
Return on Assets
A
Net Income/Total Assets
12
Q
Assets to Equity
A
Total Assets/Stockholders Equity
13
Q
Debt to Equity Ratio
A
Total Liabilities/Stockholders Equity
14
Q
Accounts Receivable Turnover
A
Sales Revenue/Average Balance of Accounts Receivable during period
15
Q
Day Sales in Accounts Receivable
A
365/Accounts Receivable Turnovers
