ratio turnover and liquidity Flashcards
cash from operating activities to current liabilities
current liabilities 200
current assets 300
net cash from operating activities 100
net cash provided by operating activites / current liabilities
100/200 = .5
Rate of return on total assets tax rate .40 interest 50 net income before taxes 125 year 1 assets 1000 year 2 assets 1050
net income plus interest expense (net of tax effect)/ Avg. total assets
A. 0.1
return on common stockholders equity dividends 15 net income 75 year 1 common stockholder equity 250 year 2 common stockholder equity 300
net income less preferred dividends / average common stockholder equity
A. 0.22
debt ratio
total assets 1050
total liabilities 650
stockholder equity 400
total liabilities / total assets
A. 1.62
debt / equity ratio
total assets 1050
total liabilities 650
stockholder equity 400
total liabilities/ total assets
=1.62
equity ratio
total assets 1050
total liabilities 650
stockholder equity 400
total stockholder equity / total assets
=.038
time interest earned days in a year 365 interest expense 50 income before taxes and income 175 income after taxes 105
income before interest expenses and taxes/ interest expenses
3.5
price earning ratio
earning per share 3
market price per common share 17
income after taxes 105
market price per common /
share earning per share
=5.67
dividend yield
dividend per common share (30000 share)
earning per share 3
market price per common share 17
dividend per common share /
market price per common share
=0.03
profit margin on sales
net income 75
earning per share 3
sales 1000
net income /sales
0.08
Book value per common share
common stockholder equity $300,000
common share outstanding 20,000 share
current liabilities $650,000
common stockholder equity $300,000/
common share outstanding 20,000 share
$15
Cash flow per common share
non cash adjustment 25
income 75
common share outstanding 20,000 share
income + non cash adjustment /
common share outstanding
$5
payout ratio to common shareholders
common dividend 10
income 75
preferred dividends 15
common dividend 10 /
income 75 -preferred dividends 15
=0.17
cash from operating activities to net income
net income 75
cash provided by operating activities 100
common dividend 10
cash provided by operating activities 100/
net income 75
=1.33
