Corporate Finance Test #1 Flashcards by Ethan Bennett | Brainscape

Q

Profit Margin

A

Net Income/Sales

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Q

Return on Assets (ROA)

A

Net Income/Total Assets

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Q

Return on Equity (ROE)

A

Net Income/Stockholder Equity or Return on Assets/(1-Debt/Assets)

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Q

Receivables Turnover

A

Sales (Credit)/Receivables

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Q

Average Collection Period

A

Accounts Receivable/Average Daily Credit Sales

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Q

Industry Turnover

A

Sales/Industry

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Q

Fixed Asset Turnover

A

Sales/Fixed Assets

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Q

Total Asset Turnover

A

Sales/Total Assets

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Q

Current Ratio

A

Current Assets/Current Liabilities

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Q

Quick Ratio

A

Current Assets-Inventory/Current Liabilities

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Q

Debt to Total Assets

A

Total Debt/Total Assets

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Q

Times Interest Earned

A

Income Pre-Interest and Pre-Tax/Interest

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Q

Fixed Charge Coverage

A

Income Pre-fixed Charges and Taxes/Fixed Charges

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