Ratios Flashcards
Quick ratio
Current assets net of inventories and prepaids / current liabilities
Current ratio
Current assets /current liabilities
Inventory turnover
COGS/ average inventory
Receivable turnover
Net credit sales / average receivables
Asset turnover
Net sales / total assets
Return on assets
Net income + interest expense (net or tax effect ) / average total assets
Return on common stock equity
Net income -less preferred dividends /average cs equity
P/E ratio
Market price per common share /earnings per share
Dividend yield
Dividend per common share /market price per common share
Profit margin on sales
Net income / sales
Debt /equity ratio
Total liabilities / shareholder equity
Equity ratio
Total stockholders equity / total assets
Times interest earned
Income before interest expenses and taxes / interest expense
