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Financial Management > Financial Ratios > Flashcards

Financial Ratios Flashcards

1
Q

Net income / Net sales

A

Net Profit Margin or Return on Sales

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2
Q

Net income / Average Total Sales

A

Return on Total Assets

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3
Q

Net income / Average Shareholder’s Equity

A

Return on Equity

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4
Q

(Net Sales - COGS) / Net Sales

A

Gross Profit Percentage

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5
Q

Net Sales / Average Total Assets

A

Asset Turnover

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6
Q

Net Sales / Average Net Fixed Assets

A

Fixed Asset Turnover

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7
Q

Net Income for Common Stock / Average of CS Outstanding

A

Earnings Per Share

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8
Q

Stock Market Price / Earnings Per Share

A

Price or Earnings Ratio

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9
Q

Dividend Per Share / Price Per Share

A

Dividend Yield

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10
Q

Common Dividend Per Share / Earnings Per Share

A

Dividend Payout

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11
Q

What are the ratios that shows a company’s ability to generate income?

A

Profitability Ratios

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12
Q

Current Assets / Current Liabilities

A

Current Ratio

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13
Q

Quick Assets / Current Liabilities

A

Quick Ratio

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14
Q

(Cash + Marketable Securities) / Current Liabilities

A

Cash Ratio

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15
Q

Net Credit Sales / Average Receivables

A

Receivables Turnover

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16
Q

No. of Days in a Year / Receivable Turnover

A

Days Sale Outstanding

17
Q

COGS / Average Total Assets

A

Inventory Turnover

18
Q

No. of Days in a Year / Inventory Turnover

A

Days in Inventory

19
Q

COGMA / Average WIP

A

Goods in Process inventory

20
Q

Days in AR + Days in Inventory

A

Days in Operating Cycle

21
Q

Net Credit Purchases / Average Trade Payables

A

Trade Payables Turnover

22
Q

No. of Days in a Year / Payables Turnover

A

Days in Trade Payables

23
Q

What are the ratios that shows a company’s short term survival?

A

Liquidity Ratios

24
Q

Total Liability / Total Assets

A

Debt to Asset Ratio

25
Q

EBIT / Interest Expense

A

Times Interest Earned

26
Q

Total Liabilities / Total Shareholder’s Equity

A

Debt to Equity Ratio

27
Q

Days in Operating Cycle - Average age of Trade Receivables

A

Cash Conversion Cycle

28
Q

(Cost of Sales + OPEX) / Average Current Assets

A

Current Asset Turnover

29
Q

Total Shareholder’s Equity / Total Assets

A

Equity Ratio

30
Q

What are the ratios that shows company’s long term survival.

A

Solvency Ratios

Financial Management (2 decks)

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