Financial Rates Flashcards
Accounts Receivable Turnover
sales / accounts receivable
Average collection period
365 days / accounts receivable turnover ratio
Current Ratio
Current assets / current liabilities
Debt-Free Working Capital Turnover
sales / debt-free working capital
Du Point Formula
net income/ equity = net income/sales * sales/assets * assets/equity
Equity to Total Assets
total equity / total assets
Dividend Payout Ratio
dividends paid / net income
Inventory Turnover
cost of good sold / inventory
Quick or Acid Test Ratio
(Cash + Cash equivalents + investments + receivables) / Current liabilities
Return on Assets
Net income after tax / Total assets
Return on Common Equity
Net income after tax / common equity
Fixed Asset Turnover
Sales / Fixed assets
Total Asset Turnover Ratio
Sales / Total assets
Times Interest Earned
Earnings before interest and taxes / Interest expense
Total Debt to Total Assets
Total liabilities / Total assets
