Financial Ratios Flashcards
1
Q
Debt Ratio
A
Debt / Total Assets = Debt %
Solvency Rate
Note - Debt Ratio is NOT the same as Debt-Equity ratio.
2
Q
Debt-Equity Ratio
A
Debt / SHE = Debt - Equity %
Leverage
3
Q
ROI
A
Net Income / Investments = ROI
Profitability ratio b/c it tells you how much you got in return for investing
4
Q
ROE
A
Net Income / SHE = ROE
Profitability ration b/c it tells you how much you got in return as an Equity shareholder