Ratios Flashcards
1
Q
Return on assets (ROA)
A
Net income
_____________
Average assets
2
Q
Return on equity
A
Net income
_____________
Owner’s equity
3
Q
Return on sales (ROS)
A
Net income
_____________
Revenue
4
Q
Gross profit margin
A
Gross profit
_____________
Revenue
5
Q
Earnings before interest and tax (EBIT)
A
Operating income
_____________
Revenue
6
Q
Asset turnover
A
Revenue
_____________
Average assets
7
Q
Current ratio
A
Current assets
_____________
Current liabilities
8
Q
Quick ratio
A
Current assets (less inventory)
_________________________
Current liability
9
Q
Interest coverage
A
Operating income
_____________
Interest expense
10
Q
Debt to equity
A
Liabilities
_____________
Owner’s equity
11
Q
Earnings per share (EPS)
A
Net income
_____________
Shares outstanding
12
Q
Price to earnings ratio (P/E)
A
Current share price
________________
Earnings per share
