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
Return on equity
ROE
Net income/Average stockholder’s equity
=asset turnoverprofit marginfinancial leverage
Return on common equity
(Net income-Preferred dividends)/Average common stockholder’s equity
Total assets turnover
Net sales/Average total assets
Accounts receivable turnover
Net credit sales/Average net receivable
Accounts receivable turnover in days
Average net receivable/(Net credit sales/365)
=365 days/Accounts receivable turnover
Inventory turnover
Cost of goods sold/Average inventory
Price earnings ratio
Price per share/Earnings per share
Dividends payout ratio
Dividends per share/Earnings per share
Dividends yield
Dividends per share/Price per share
Book value per share
Book value of stockholder’s equity/Shares outstanding
Price to book ratio
Price per share/Book value per share
Market to book ratio
Price per share/book value per share
