FIN 431: 7 RATIOS Flashcards

1
Q

net income/sales

A

profit margin

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2
Q

net income/equity

A

ROE

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3
Q

current assets/ current liabilities

A

current ratio

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4
Q

total debt/ total equity

A

debt-equity ratio

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5
Q

dividends per share/earnings per share (EPS)

A

dividend payout ratio

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6
Q

net income/number shares outstanding

A

EPS

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7
Q

price per share/EPS

A

PE ratio

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