Ratio Denominator/numerator Definitions Flashcards
Gross Profit
Used In:
Profitability Ratios
- Gross Margin Ratio (Numerator)
Sales
Used In: Profitability Ratios [ALL DENOMINATOR] - Gross Margin - Operating Margin - EBIT Margin - Net Profit Margin
EBIT
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]
Net Income
Used In:
Profitability Ratios
- Net Profit Margin [numerator]
Operating Returns
- Return on Equity (ROE) [numerator]
- Return on Assets (ROA) (Net income+interest expenses) [numerator]
Current Assets
Used in:
Liquidity Ratio
- Current Ratio [numerator]
Current Liabilities
Used In: Liquidity Ratios (ALL DENOMINATOR) - Current Ratio - Quick Ratio - Cash Ratio
Cash & Short-term Investments
+
Accounts Receivable
Used in:
Liquidity Ratios
- Quick Ratio [ Numerator]
Cash
Used In:
Liquidity Ratios
- Cash Ratio [numerator]
- Quick Ratio (cash +short term investments) [numerator]
Average Daily Sales
Used in:
Working capital ratios
- Accounts Receivable Days [denominator]
Accounts Payable
Used in :
Working capital Ratios
- Accounts Payable Days [numerator]
Inventory
Used In:
Working Capital Ratios
- Inventory Days [Numerator]
Average Daily Cost Of Sales
Used in
Working Capital Ratios
- Accounts Payable Days [denominator]
- Inventory days [denominator]
Interest Expense
Used In
Interest Coverage Ratios [ALL DENOMINATO]
- EBIT/Interest Coverage
-EBITDA/Interest Coverage
EBITDA
Used In:
Interest Coverage Ratios
- EBITDA/Interest Coverage
Valuation Ratios
- Enterprise value to EBITDA
Total Debt
Used In:
Leverage Ratios [ALL NUMERATOR]
- Debt - Equity Ratio (Book)
- Debt - Equit Ratio (Market)
Leverage Ratios
- Debt-to-capital Ratio [Numeator]