Ratio Flashcards
Total debt ratio
Total liabilities/Total assets
Total assets=Total liabilities+Total stockholder’s equity
Debt to equity ratio
Total liabilities/Total stockholder’s equity
Total stockholder’s equity=Net assets
Equity ratio
Total stockholder’s equity/Total assets
Total stockholder’s equity=Net assets
Times interest earned
Earnings before interest and tax/Interest expense
Earnings before interest and tax=EBIT
Interest coverage ratio
Earnings before interest and tax/Interest expense
Earnings before interest and tax=EBIT
(Net)Working capital
Current assets-Current liabilities
Current ratio
Current assets/Current liabilities
Working capital ratio
Current assets/Current liabilities
Quick ratio
(Cash and cash equivalents+Marketable securities+Net receivables)/Current liabilities
Acid test ratio
(Cash and cash equivalents+Marketable securities+Net receivables)/Current liabilities
Cash ratio
(Cash and cash equivalents+Marketable securities)/Current liabilities
Net profit margin on sales
Net income/Sales
Net operating margin on sales
Operating income/Sales
Gross profit margin on sales
Gross profit/Sales
Return on total assets
ROA
Net income/Average total assets
=total asset turnover*profit margin
