Financial ratios Flashcards
Receivables turnover
Annual sales/Receivables
Inventory turnover
COGS/Average Inventory
Payables turnover
COGS/Average trade payables
Days of sales outstanding
365/Receivables turnover
Days of inventory outstanding
365/Inventory turnover
Number of days of payables
365/Payables turnover
Cash Conversion Cycle
Days of sales outstanding + day of inventory outstanding - number of days payables
Total asset turnover
Revenue/average total assets
Operating efficiency ratio
Fixed asset turnover
Revenue/Average net fixed assets
Operating efficiency ratio
Working capital turnover
Revenue/Average working capital
Operating efficiency ratio
Gross profit margin
Gross profit/revenue
Operating profitability
Operating profit margin
EBIT (operating income)/ revenue
Operating profitability
Net profit margin
Net income/revenue
Operating profitability
Return on invested capital
EBIT/Average total capital
Debt-to-equity
Total debt/Total shareholder equity
Solvency ratio
Debt-to-capital
Total debt/(Total debt+total shareholder equity)
Solvency ratio
Debt-to-assets
Total debt/Total assets
Solvency ratio
Debt-to-EBITDA
Total debt-EBITDA
Solvency ratio
Financial leverage
Average total assets/Average total equity
Solvency ratio
Interest coverage
EBIT/Interest paymnets
Measure of interest coverage
Fixed charge coverage
(EBIT + Lease payments) / (Interest payments + lease payments)
Measure of interest coverage
DuPont ROE (traditional)
(net profit margin) x (total asset turnover) x (financial leverage ratio)
ROE
DuPont ROE (extended)
(tax burden) x (interest burden) x (EBIT margin) x (total asset turnover) x (financial leverage)
ROE
