Ratios Flashcards
Current Ratio =
(Current Assets) / (Current Liabilities)
Acid Test (Quick Ratio) =
(Cash, Net Receivables, Marketable Securities) / (Current Liabilities)
Debt-to-Equity Ratio =
Total Liabilities / Common Stockholder’s Equity
Working Capital =
Current Assets / Current Liabilities
Securities Defensive - Interval =
(Cash + (net) Receivables + Marketable Securities) / (Avg. Daily Cash Expenditures)
Times Interest Earned =
(Net Income + Int. Expense + Income Tax) / Int. Expense
Times Preferred Dividend Earned =
(Net Income) / (Annual Preff. Dividend Obligation)
A/R Turnover =
((net) Credit Sales) / (Avg. (net) A/R)
Inventory Turnover =
COGS / Avg. Inventory
of Days’ Sales in Avg. Receivables
(300 or 360 or 365) / A/R Turnover
of Days’ supply in Inventory
(300 or 360 or 365) / Inventory Turnover
Profit Margin
Net Income / Sales
Return on Total Assets
(Net Income + Int. Expense) / Avg. Total Assets
Return on Common Stockholders Equity
(Net Income - Preff. Dividend) / Avg. Common Stockholders Equity
Return on O/E
Net Income / Avg. O/E
