finance Flashcards
formulas
Current ratio
total current assets/total current liabilities
Quick ratio
total current assets - inventory\
total current liabilities
Inventory turnover
COGS/Inventory
average age inventory
365/inventory turnover
average collection period
accounts receivable/ annual sales/365
average payment period
accounts payable/ annual purchases/365
total assets turnover
net sales/total assets
debt ratio
total liabilities / total assets
times interest earned
EBIT/Interest
gross profit margin
gross profit/net sales
operating profit margin
operating profits/net sales
net profit margin
earnings available to common stockholders/ sales
earnings per share
earnings available to common stockholders/ number of shares outstanding
return on total assets
earnings available to common stockholders/ total assets
DuPont system of analysis
ROA= Net profit margin X total asset turnover
return on common equity
earnings available to common stockholders/ common stock equity
price/earnings ratio
market price per share of common stock/ earnings per share
book value per share
common stock equity/ number of shares of common stock
market/book ratio
market price per share of common stock/ book value per share of common stock
