Chapter 2 Flashcards
1
Q
Operating margin (om)
A
Operating income / sales
2
Q
Net profit margin
A
Net profit / sales
3
Q
Net profit / sales
A
Net profit margin (npm)
4
Q
Operating income / sales
A
Operating margin
5
Q
Gross profit / sales
A
Gross margin
6
Q
Return on equity (ROE)
A
Net income / average BV of equity
BV = book value
7
Q
Return on assets (ROA)
A
Net income / ave BV of assets
BV = book value
8
Q
EPS (earnings per share)
A
Net income / ave outstanding number shares
9
Q
Gross margin (GM)
A
Gross profit / sales
10
Q
P/E ratio
A
Share price / EPS
11
Q
Forecast Price (2015)
A
Forecast EPS (2015) x price (2014)/EPS(2014)
12
Q
Net working capital
A
Current assets - current liabilities
13
Q
Current ratio
A
Current assets / current liabilities
14
Q
Quick ratio
A
Cash+near cash / current liabilities
15
Q
Cash ratio
A
Cash / current liabilities
