Financial Analysis Formulas Flashcards
Rate of Return
Profitability Ratio
Rate of return on Common Stockholders Equity
Profitability Ratio
Earnings per Share
Profitability Ratio
Price-Earnings Raio
Profitability Ratio
Yield on Common Stock
Profitabilty Ratio
Dividend per share/ Market Price per Share = Yield on Common Stock
Rate of return on total assets
Income before interest expense and income taxes /
Total Assets
Profitability Ratio
Asset Turnover
Net Sales /
Total Assets = Assets Turnover
Profitability Ratio
Number of Times Bond Interest Earned
Income Before bond interest and income taxes /
Bond interest cash requirement
Financial Strength Ratios
Ratio of Stockholders Equity to Total Equity
Stockholders Equity /
Total equities
Ratio of Stockholders Equity to total liabilities
Stockholders equity /
total liabilties
Financial ratio
Book Value per share of stock
Common Stockholders equity /
Number of common shares
Working Capital
Current Assets - Current Liabilties = working capital
Liquidity Ratio
Current Ratio
Current Assets /
Current Liabilities = current ratios
Liquidity Ratio
Acid Test Ratio
Quick Assets /
Current Liabilities
Inventory Turnover
Cost of Goods Sold /
Average Inventory
Liquidity Ratio
