Ratio Denominator/numerator Definitions Flashcards

1
Q

Gross Profit

A

Used In:
Profitability Ratios
- Gross Margin Ratio (Numerator)

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2
Q

Sales

A
Used In:
Profitability Ratios [ALL DENOMINATOR]
- Gross Margin 
- Operating Margin 
- EBIT Margin 
- Net Profit Margin
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3
Q

EBIT

A

Used In:
Profitability Ratios
- EBIT Margin [numerator]

Interest Coverage Ratios
- EBIT/Interest Coverage [numerator]

Valuation Ratios
Enterprise value to EBIT [denominator]

Operating Returns
- Return On Invested Capital
EBIT(1 - Tax) [Numerator]

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4
Q

Net Income

A

Used In:
Profitability Ratios
- Net Profit Margin [numerator]

Operating Returns

  • Return on Equity (ROE) [numerator]
  • Return on Assets (ROA) (Net income+interest expenses) [numerator]
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5
Q

Current Assets

A

Used in:
Liquidity Ratio
- Current Ratio [numerator]

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6
Q

Current Liabilities

A
Used In:
Liquidity Ratios (ALL DENOMINATOR)
- Current Ratio
- Quick Ratio
- Cash Ratio
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7
Q

Cash & Short-term Investments
+
Accounts Receivable

A

Used in:
Liquidity Ratios
- Quick Ratio [ Numerator]

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8
Q

Cash

A

Used In:
Liquidity Ratios
- Cash Ratio [numerator]
- Quick Ratio (cash +short term investments) [numerator]

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9
Q

Average Daily Sales

A

Used in:
Working capital ratios
- Accounts Receivable Days [denominator]

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10
Q

Accounts Payable

A

Used in :
Working capital Ratios
- Accounts Payable Days [numerator]

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11
Q

Inventory

A

Used In:
Working Capital Ratios
- Inventory Days [Numerator]

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12
Q

Average Daily Cost Of Sales

A

Used in
Working Capital Ratios
- Accounts Payable Days [denominator]
- Inventory days [denominator]

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13
Q

Interest Expense

A

Used In
Interest Coverage Ratios [ALL DENOMINATO]
- EBIT/Interest Coverage
-EBITDA/Interest Coverage

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14
Q

EBITDA

A

Used In:
Interest Coverage Ratios
- EBITDA/Interest Coverage

Valuation Ratios
- Enterprise value to EBITDA

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15
Q

Total Debt

A

Used In:
Leverage Ratios [ALL NUMERATOR]
- Debt - Equity Ratio (Book)
- Debt - Equit Ratio (Market)

Leverage Ratios
- Debt-to-capital Ratio [Numeator]

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16
Q

Book Value Of Equity

A

Used In:
Leverage Ratios
- Debt Equity Ratio (book) [Denominator]

17
Q

Market Value Of Equity

A

Used In
Leverage Ratios
- Debt - Equity Ratio (market) [Denominator]

18
Q

Total Equity + Total Debt

A

Used In
Leverage Ratios
- Debt-to-capital Ratio [Numerator

19
Q

Enterprise Value

A

Used In
Leverage Ratios
- Debt-to-enterprise value ratio [denominator]

Valuation Ratios

  • Enterprise value to sales [Numorator]
  • Enterprise value to EBIT [Numorator]
  • Enterprise value to EBITDA [Numorator]
20
Q

Share Price

A

Used In
Valuation Ratios
- Price-Earnings Ratio [Numorator]

21
Q

Earnings Per Share

A

Used In
Valuation Ratios
- Price-earnings Ratio [denominator]

22
Q

EBIT (1 - Tax Rate)

A

Used In
Operating Returns
- Return on Investment Capital (ROIC) [numerator]

23
Q

Book value of Equity + Net Debt

A

Used In
Operating Returns
- Return on Invested Capital [denominator]

24
Q

Net Income + Interest Expense

A

Used In
Operating Returns
- Return on Assets [numerator]

25
Q

Accounts Receivable

A

used in
Working Capital Ratios
- Accounts Receivable Days [numerator]