Financial Ratios Flashcards
Asset Turnover Ratio
Sales / Average Assets
Receivables Turnover Ratio
Sales / Average Receivables
Payables Turnover Ratio
Cost of Goods Sold / Average Payable
Inventory Turnover Ratio
Cost of Goods Sold / Average Inventory
Current Ratio
Current Assets / Current Liabilities
Working Capital Ratio
Net Working Capital / Sales
Quick (Acid-Test) Ratio
(Cash + Cash Equivalents + Accounts Receivables) / Current Liabilities
Basic EPS
Earnings Available to the Common Shareholders (Net Income - Preferred Dividends) / Weighted Average Number of Shares of Common Stock Outstanding
Fully Diluted EPS
Earnings Available to the Common Shareholders (Net Income + Adjustments for CSE and OPDS) / Weighted Average Number of Shares of Common Stock + Weighted Average CSEs and OPDS, where CSE = Common Stock Equivalents an OPDS = Other Potentially Dilutive Securities
Anti-Dilution Provision
the right of shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock
Equity Turnover
Sales / Average Equity
Earnings Before Interest and Taxes (EBIT) Margin
EBIT / Sales
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Margin
EBITDA / Sales
Gross Margin
Gross Profit / Sales
Net Margin
Net Income / Sales
Pre-Tax Margin
Earnings Before Taxes (EBT) / Sales
Operating Profit Margin
Income from Operations / Sales
Return on Assets
Net Income / Average Assets
Return on Equity
Net Income Available to Common / Average Common Equity
Day Sales Outstanding (DSO)
Accounts Receivable / (Total Credit Sales / Number of days in the period being analyzed, usually 360)
Debit to Total Capital
Debt / Total Capital (Debt + Equity)
Debt to Equity Ratio
Total Debt / Total Equity
Debt to EBITDA Ratio
Short-Term and Long-Term Debt / EBITDA
Interest Coverage Ratio
EBIT / Interest Expense
Dividend Payout Ratio
Dividends / Net Income
