Ratios Flashcards
Quick Ratio (Acid Test)
Current Assets Less Inventory and Prepaids/Current Liabilities
Cash + Marketable Securities + A/R/Current Liabilities
Debt to Equity
Total Liabilities/Total S/H Equity
Different definitions of debt and equity change results
Book Value per Share of C/S
Stockholders Equity* / # Shares C/S
*Par + APIC + RE - T/S
Current Ratio
Current Assets/Current Liabilities
Asset Turnover
Total Asset Turnover
Net Sales/Total Assets
Net Sales/Average Total Assets
Accounts Receivable Turnover (# of Times turned over)
A/R Average Collection Period (Days per each turn over)
Net Credit Sales/Average A/R*
*(Beg A/R + End A/R) / 2
360 (year) days/ AR Turnover
Inventory Turnover
COGS/Average Inventory*
*(Beg Inventory + End Inventory)/2
Measures of Liquidity
Current Ratio Quick Ratio Inventory Turnover Receivables Turnover Cash from Operating to Current Liabilities
Measures of Return on Investment (ROI)
Total Asset Turnover Rate of Return on Total Assets Return on CSE Price-Earnings Ratio Dividend Yield Profit Margin on Sales Payout Ration to Common
Measures of Solvency
Debt to Equity Equity Times Interest Earned Book Value per CS Cash Flow per CS Operating Cash to NI
Rate of Return on Total Assets
Net Income plus Interest Expense/Average Total Assets
Return on CSE
Net Income less Preferred Dividends/Average Common Stockholders Equity
Debt Ratio
Total Liabilities/Total Assets
Times Interest Earned
Income Before Interest Expense & Taxes/Interest Expense
Price-Earnings Ratio
Market Price per CS/EPS
