ratios Flashcards
Gross profit margin
gross profit / sales = %
Operating profit margin
EBIT OR EBITDA/ Sales = %
EBIT
Earnings before interest and taxes
EBITDA
Earnings before interest, taxes, depreciation and amortization
Net profit margin
Net income / sales = %
Return on assets (ROA)
Net income / total assets = %
Retrun on equity (ROE)
Net income / shareholders equity = %
Earnings per share - EPS
( Net income - Dividends on preferred shares ) / Weighted average number of common shares outstanding = $
Diluted earnings per share
( Net income - dividends on preferred shares ) / weighted average number of common shares outstanding + common shares issued if dilutive instruments were converted = $
Price to earnings ratio : P/E
Share price/ earnings per share = multiple
Days accounts payables outstanding
Accounts payable / purchases *365 = nb of days
Accounts payable turnover
Purchases / accounts payable = number of times
Days inventory outstanding
inventory / cost of sales * 365 days = nb of days
Inventory turnover
cost of sales / inventory = number of days
Days of sales outstanding
accounts receivable / sales * 365 days = nb of days
Receivable turnover
sales / account receivable = nb of times
Operating conversion cycle
Days inventory outstanding + days sales outstanding
Cash conversion cycle
time to sell inventory + customer collection time - days payable outstanding
Asset turnover
revenues / total assets = nb times
current ratio
current assets / current liabilities
quick ratio
( cash + current investments + accounts receivables ) / current liabilities
Acid test ratio (cash ratio)
(cash and cash equivalents + current investments) / current liabilities
Debt ratio
Total liabilites/total assets = %
long term debt to equity ratio
long term debt/ equity = multiple
