Ratios Flashcards
Receivables turnover ratio
Net credit sales / Average accounts receivables
Average collection period
365 / Receivables turnover ratio
Inventory turnover ratio
Cost of Goods Sold / Average Inventory
Average days in inventory
365 / Inventory turnover ratio
Current ratio
Current Assets / Current Liabilities
Acid-test ratio
Cash + Current Investments + Accounts Receivable / Current Liabilities
Debt to equity ratio
Total Liabilities / Stockholder’s Equity
Times interest earned ratio
Net Income + Interest Expense + Tax Expense /
Interest Expense
Gross profit ratio
Gross Profit / Net sales
Return on assets
Net income / Average Total Assets
Profit margin
Net Income / Net sales
Asset turnover
Net Sales / Average Total Assets
Return on equity
Net Income / Average Stockholder’s Equity
Dividend Yield
Dividends per share / Stock price
Earnings per share
Net Income - Preferred Stock Dividends /
Average shares of common stock outstanding
