Ratios Flashcards
Current ratio
(Current Asset)/(Current Liabilities)
Quick ratio
(Quick assets)/(Current Liabilities)
*Quick asset is current excluding inventory
Cash ratio
(CashMarketable securities)/(Current liabilities)
Debt to asset ratio
(Total debt)/(Total assets)
Debt to equity ratio
(Total debt)/(Total Equity)
Interest coverage
EBIT/(Interest Expense)
Gross profit margin
(Gross profit)/Revenue
Operating profit margin
(Operating income)/Revenue
Net profit margin
(Net income)/Revenue
Return on asset (ROA)
(Net income)/(Total asset)
Return on equity (ROE)
(Net income)/Equity
Asset turnover
Revenue/(Total assets)
Inventory turnover
COGS/(Average Inventory)
Receivables turnover
Revenue/(Average accounts receivable)
EPS
(Net income−Preferred dividends)/(Weighted Average shares outstanding)
P/E
(Market price per share)/EPS
Dividend Yield
(Annual dividends per share)/(Market price per share)
Working capital turnover
Revenue/(Average working capital)
Fixed asset turnover
Revenue/(Average Net Fixed Assets)
DSO
(Number of Days in Period)/(Receivables Turnover)
Cash conversion cycle
DSO+Days inventory held−Number of days payables
Debt to capital
(Total debt)/(Total debt+Equity)
Fixed charged coverage
(EBIT+Lease payments)/(Interest payments+Lease payments)
Effective tax rate
(Tax expense)/(Earnings before tax)
Financial leverage
Debt/Equity
