Exam 3 Flashcards
Return on Equity ROE
Net Income/Average Total Stockholders Equity
Return on assets ROA
Net income/average total assets
Gross profit margin ratio
Gross profit/net sales revenue
Net profit margin ratio
Net income/net sales revenue
Earnings-per-share EPS
Net income/weighted average number of common shares outstanding
Quality of income ratio
Cash flows from operating activities/net income
Total asset turnover ratio
Net sales revenue/average total assets
Fixed asset turnover ratio
Net sales revenue/average fixed assets
Receivables turnover ratio
Net credit sales/average net receivables
Inventory turnover ratio
Cost of good sold/average inventory
Accounts payable turnover ratio
Cost of good sold/average accounts payable
Asset to equity ratio
Average total assets/average total stockholders equity
Current ratio
Current assets/current liabilities
Quick ratio or acid test
Cash and cash equivalents + net accounts receivable + marketable securities/current liabilities
Cash ratio
Cash and cash equivalent/current liabilities
Times interest earned ratio
Net income + interest expense + income tax expense/interest expense
Cash coverage ratio
Cash flows from operating activities/interest paid
Debt to equity ratio
Total liabilities/total stock orders equity
Price/earnings ratio PE
Market price per share/EPS
Dividend yield ratio
Dividends per share/market price per share
RE
Old RE + NI - Dividends
APIC
(Issuance Price - Par Value) x shares
Free Cash Flow
Cash flow from operating activities - cash dividends - capital expenditures
