Ratios Flashcards
Current Ratio
Current Assets/Current Liabilities
Quick Ratio (Acid Test)
(Current Assets - Inventory - Prepaid Assets)/Current Liabilities
Inventory Turnover
Cost of Good Sold/Average Inventory
Day sales in Inventory (Inventory Turnover in Days)
(Average Inventory/Cost of Good Sold)*Working Days
Receivables Turnover
Net Credit Sales/Average Net Receivables
Day Sales in Receivables (Receivable Turnover in Days)
(Average Receivables/Net Credit Sales)*Working Days
Cash from Operating Activities to Current Liabilities
Net Cash provided by Operating Activites/Current Liabilities
Total Asset Turnover
Net Sales/Average Total Assets
Rate of Return on Total Assets
Return on Investment
(Net Income + Interest Expense (net of tax effect))/Average Total Assets
Return on Common Stockholders’ Equity
(Net Income - Preffered Dividends)/Average Common Stockholders’ Equity
Debt Ratio
Total Liabilities/Total Assets
Debt/Equity Ratio
Total Liabilities/Shareholders’ Equity
Equity Ratio
Total Stockholders’ Equity/Total Assets
Times Interest Earned
Income before Interest Expense & Taxes (IBIT)/Interest Expense
Price-Earnings Ratio
Market Price Per Common Share/Earnings Per Share
