quiz 1 Flashcards
current ratio
current assets/current liabilities
quick ratio
current assests - inventory/ current liabilities
cash ratio
cash/ current liabilities
total debt ratio
total assests - total equity/ total assets
equity multiplier
total assets/total equity
times interest earned ratio
EBIT/ interest
cash coverage ratio
EBIT + Depreciation/interest
inventory turnover
cost of goods sold/inventory
days sales in inventory
365 days/ inventory turnover
receivables turnover
sales/ accounts receivable
days sales in receivable
365 days/ receivables turnover
total asset turnover
sales/ total assets
profit margin
net income/ sales
return on assets(ROA)
net income/total assets
return on equity (ROE)
net income/ total equity
ROE
net income/sales X sales/assets X assets/equity
price earning ration
Price per share/ earnings per share
The five common financial ratios
short term solvency, long term solvency, assets turnover, profitability ratio, market value
bonds
interest and bonds move in opposite directions
bond
fixed payments
stock
growing payment
