Ratios Flashcards
Gross profit margin
Net sales - CGOS / Net sales
Profit margin
Net income / Net sales
Return on sales
Income before interest income, interest expense, and taxes / Net sales
Return on Assets
Net income / Average total assets
DuPont return on assets
Profit margin * asset turnover
Return on equity
Net income / average total equity
Operating cash flow ratio
Cash flow from operations / current liabilities
Current ratio
Current assets / current liabilities
Quick ratio
Cash and cash equivs + short term marketable securities + receivables (net) / current liabilites
Accounts receivable turnover
Net sales / Average accounts receivable (net)
Days sales in AR
Ending AR (net) / Net sales/365
Inventory turnover
COGS / Average inventory
Days in inventory
Ending inventory / COGS/365
AP turnover
COGS / Average AP
Days of payables outstanding
Ending AP / COGS/365
Cash conversion cycle
Days sales in AR + Days in inventory - Days of payables outstanding
Debt to equity
Total liabilities / total equity
Total debt ratio
Total liabs / total assets
Equity multiplier
Total assets / total equity
Times interest earned
Income before interest expense and taxes / interest expense
OR
earnings before interest and taxes / interest expense
Price to earnings ratio
Price per share / Basic EPS
Dividend payout
Cash dividends / Net income
Asset turnover
Net sales / Average total assets
Dilutive effect of options (used in dilutive EPS formula)
Number of shares - [(Number of shares * exercise price) / average market price] = additional shares outstanding
