Financial Ratios Flashcards by Phillip Danieley | Brainscape

Q

Current assets / current liabilities

A

current ratio

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Q

current assets - inventory / current liabilities

A

quick ratio or acid test

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Q

total debt / total assets

A

debt ratio

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Q

annual sales / fixed assets

A

fixed asset turnover

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Q

cost of goods sold / average inventory

A

inventory turnover ratio

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Q

sales / average accounts receivable

A

accounts receivable turnover

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Q

earnings before interest and taxes / sales

A

operating profit margin

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Q

net income / sales

A

net profit margin

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Q

net income / total assets

A

return on assets (ROA)

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Q

net income / equity

A

Return on equity (ROE)

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Q

total debt / total equity

A

debt-to-equity ratio

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Q

earnings before interest and taxes / annual interest charges

A

times interest earned

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Q

dividends / net income

A

dividend payout ratio

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Q

market price per share / earnings per share

A

price-to-earnings ratio (basic calculation)

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