Financial Ratios Flashcards
Gross (profit) margin
Sales (net) - COGS / Sales (net)
Profit margin
NI / Sales (net)
Return on Sales
EBIT / Sales (net)
EBIT instead of NI, to focus on operations efficiency.
Return of Assets (ROA)
NI / Avg Total Assets
DuPont Return on Assets
Profit Margin x Asset Turnover
NI / Sales (net)
X
Sales (net) / Avg Total Assets
Return on Equity
NI / Avg Total Equity
Operating Cashflow Ratio
Cashflow from Operations / Current Liabilities
Current Ratio
CA / CL
Quick Ratio
Cash and Cash Equivalents + ST Marketable Securities + AR (net) / CL
Current Ratio without Inventory in the numerator.
AR Turnover
Sales (net) / Avg AR (net)
Days Sales in Accounts Receivable
Ending AR (net)
/
Sales (net) / 365
Inventory Turnover
COGS / Avg Inv
Days in Inventory
Ending Inv
/
COGS / 365
AP Turnover
COGS / Avg AP
Days of Payables Outstanding
Ending AP
/
COGS / 365
Cash Conversion Cycle
Days Sales in AR + Days in Inventory - Days of Payables Outstanding
Debt to Equity
Total Liabilities / Total Equity
Total Debt Ratio
Total Liabilities / Total Assets
Equity Multiplier
Total Assets / Total Equity
Times Interest Earned
EBIT / Interest Exp
Price to Earnings
Price per share / Basic earnings per share
Dividends Payout
Cash Dividends / Net Income
Asset Turnover
Sales (net) / Avg Total Assets
