FAR Flashcards
Working Capital
current assets - current liabilities
Working Capital (Current) Ratio
current assets/current liabilities
Quick Ratio
(cash+receivables+marketable securities)/current liabilities
Securities Defensive-Interval Ratios
(cash+receivables+marketable securities)/avg daily cash expenditures
Times Interest Earned Ratio
(net income+interest expense+income tax)/interest expense
Times Preferred Dividends Earned Ration
net income/annual preferred dividend obligation
Accounts Receivable Turnover
(net) credit sales/avg accounts receivable
of Days Sales in Receivables
365/ accounts receivable turnover
Inventory Turnover
cost of goods sold/avg inventory
of Days Supply in Inventory
365/ inventory turnover
Profit Margin
net income/(net) sales
Return on Total Assets
(net income+interest expense(net of tax effect))/avg total assets
Return on Equity
(net income-preferred dividends)/avg stockholders equity
Earnings Per Share
(net income-preferred dividends)/avg # of shares outstanding
Price Earnings Ratio
market price for a common share/eps
Common Stock Dividends Pay Out Ratio Total Basis
cash dividends to common shareholders/net income to common shareholder
Common Stock Dividends Pay Out Ratio Per Share Basis
cash dividends per common share/earnings per common share
Common Stock Yield
dividend per common share/market price per common share
Debt to Equity Ratio
total debt/total equity
Owners Equity Ratio
equity/total assets
Debt Ratio
total liabilities/total assets
Book Value Per Common Stock
common shareholders equity/total # of outstanding common shares
Book Value Per Preferred Share
preferred shareholders equity/# of outstanding preferred shares
