Ratio Formulas Flashcards
1
Q
Return on Sales (ROS)
A
Net Income / Sales Revenue
2
Q
Return on Equity (ROE)
A
Net Income / Owner’s Equity
3
Q
Earnings per Share (EPS)
A
Net Income / # Shares Outstanding
4
Q
Market Capitalization (Market Cap)
A
Share Value • # Shares Outstanding
5
Q
Total Debt to Asset (D/A)
A
Total Liabilities / Total Assets
6
Q
Long-Term Debt/Equity (LTD/E)
A
Long Term Debt / Total Equity
7
Q
Current Ratio
A
Current Assets / Current Liabilities
8
Q
Quick Ratio (acid test)
A
(Cash + Accounts Receivable) / Current Liabilities
9
Q
Working Capital
A
Current Assets - Current Liabilities
