FAR Chapter 2 Ratios Flashcards
1
Q
ROE
A
Net Income/Average shareholders equity
2
Q
ROI
A
Net Income/Average Invested Capital
3
Q
ROA
A
Net Income/ Average total assets
4
Q
DuPont ROE
A
Net profit margin X Asset Turnover X Financial Leverage(Assets/Equity)
5
Q
Current Ratio
A
Current Assets/Current Liabilities
6
Q
Quick (acid test) ratio
A
Cash plus AR/current liabilities
7
Q
Cash ratio
A
Cash plus marketable securities /current liabilities
8
Q
Total Debt
A
Total debt/Total assets
9
Q
Debt to total capital
A
Total debt/Total Capital
10
Q
Debt to equity
A
Total debt/Total Equity
11
Q
Times interest earned
A
Ebit/interest expense
