Analytics Definitions Flashcards
Accounts receivable turnover
Sales (net)/
Average accounts receivable (net)
Asset turnover
Sales (net)/
Average total assets
Basic earnings per share
Income available to common shareholders/
Weighted-average common shares outstanding
Cash conversion cycle
Days sales in accounts receivable + Days in inventory －
Days of payables outstanding
Current ratio
Current assets/
Current liabilities
Days in inventory
Average inventory/
(Cost of goods sold / 365)
Days of payables outstanding
Average accounts payable/
(Cost of goods sold / 365)
Days sales in accounts receivable
Average accounts receivable (net)/
(Sales (net) / 365)
Debt to equity ratio
Total liabilities/
Total equity
Dividend payout
Cash dividends/
Net income
Equity multiplier
Cash dividends/
Net income
Gross margin (Gross profit margin)
(Sales (net) － Cost of goods sold)/
Sales (net)
Inventory turnover
Cost of goods sold/
Average inventory
Operating cash flow ratio
Cash flow from operations/
Ending current liabilities
Price earnings ratio
Price per share/
Basic earnings per share
Profit margin
Net income/
Sales (net)
Quick ratio
(Cash and cash equivalents + Short-term marketable securities + Receivables (net))/
Current liabilities
Return on assets
Net income/
Average total assets
Return on equity
Net income/
Average total equity
Return on sales
(Income before interest income, interest expense, and taxes)/
Sales (net)
Times interest earned
(Income before interest income, interest expense, and taxes)/
Interest expense
Total debt ratio
Total liabilities/
Total assets
