Financial Ratios Flashcards
Net income / Net sales
Net Profit Margin or Return on Sales
Net income / Average Total Sales
Return on Total Assets
Net income / Average Shareholder’s Equity
Return on Equity
(Net Sales - COGS) / Net Sales
Gross Profit Percentage
Net Sales / Average Total Assets
Asset Turnover
Net Sales / Average Net Fixed Assets
Fixed Asset Turnover
Net Income for Common Stock / Average of CS Outstanding
Earnings Per Share
Stock Market Price / Earnings Per Share
Price or Earnings Ratio
Dividend Per Share / Price Per Share
Dividend Yield
Common Dividend Per Share / Earnings Per Share
Dividend Payout
What are the ratios that shows a company’s ability to generate income?
Profitability Ratios
Current Assets / Current Liabilities
Current Ratio
Quick Assets / Current Liabilities
Quick Ratio
(Cash + Marketable Securities) / Current Liabilities
Cash Ratio
Net Credit Sales / Average Receivables
Receivables Turnover
No. of Days in a Year / Receivable Turnover
Days Sale Outstanding
COGS / Average Total Assets
Inventory Turnover
No. of Days in a Year / Inventory Turnover
Days in Inventory
COGMA / Average WIP
Goods in Process inventory
Days in AR + Days in Inventory
Days in Operating Cycle
Net Credit Purchases / Average Trade Payables
Trade Payables Turnover
No. of Days in a Year / Payables Turnover
Days in Trade Payables
What are the ratios that shows a company’s short term survival?
Liquidity Ratios
Total Liability / Total Assets
Debt to Asset Ratio
EBIT / Interest Expense
Times Interest Earned
Total Liabilities / Total Shareholder’s Equity
Debt to Equity Ratio
Days in Operating Cycle - Average age of Trade Receivables
Cash Conversion Cycle
(Cost of Sales + OPEX) / Average Current Assets
Current Asset Turnover
Total Shareholder’s Equity / Total Assets
Equity Ratio
What are the ratios that shows company’s long term survival.
Solvency Ratios
