Module 4 Flashcards by Kirt Thorne | Brainscape

Q

Liquidity Ratio

A

current assets / current liabilities

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Q

Acid Test or quick ratio

A

(current assets - current inventory)/liabilities

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Q

Inventory Turnover ratio

A

cost of goods sold / average inventory

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Q

Accounts receivable turnover

A

sales / average accounts receivable

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Q

Fixed-asset turnover

A

annual sales / fixed assets

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Q

Operating profit margin

A

earnings before interest and taxes (EBIT) / sales

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Q

Net profit margin

A

net income / sales

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Q

Return on asset

A

net income / total assets

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Q

Return on equity

A

net income / equity

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Q

Debt-to-capital ratio

A

total debt / total capital

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Q

Debt-to-equity ratio

A

total debt / total equity

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Q

Times interest earned

A

earnings before interest and taxes (EBIT) / annual interest charges

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Q

Payout ratio

A

dividends /earnings

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Q

Price-to-earnings ratio

A

market price per share / earnings per share

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