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aud 1 > ratios > Flashcards

ratios Flashcards

1
Q

Working Capital

A

current assets-current liabilities

Liquidity

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2
Q

Current ratio (working capital ratio)

A

Current assets/ current liabilities

Liquidity

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3
Q

Acid-test ratio

A

cash equivalents+ marketable securities+ accounts receivable / Current liabilities

Liquidity

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4
Q

Cash ratio

A

Cash equivalents+ marketable securities / Current liabilities

Liquidity

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5
Q

Accounts receivable turnover

A

Net credit sales / average net receivables

Activity

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6
Q

Accounts Receivable turnover in days

A

Average net receivables/
Net credit sales/365

Activity

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7
Q

Inventory turnover

A

Cost of goods sold/ Average inventory

Activity

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8
Q

Inventory turnover in days

A

Average inventory/
Cost of goods sold/365

Activity

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9
Q

Operating Cycle

A

Accounts receivable turnover in days+ inventory turnover in days

Activity

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10
Q

Working capital turnover

A

Sales/ average working capital

Activity

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11
Q

Total asset turnover

A

Net sales/ average total assets

Activity

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12
Q

Accounts payable turnover

A

Purchases/ average accounts payable

Activity

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13
Q

Days in accounts payable

A

Average accounts payable/
purchases /365

Activity

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14
Q

Net profit margin

A

Net income/ Net sales

Profitability

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15
Q

Return on total assets

A

Net income/average total assets

Profitability

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16
Q

Return on assets

A

Net profit margin x Total asset turnover

Profitability

17
Q

Return on investment

A

Net income + Interest expense (1-tax rate) \
Average (long term liabilities + Equity)

Profitability

18
Q

Return on common equity

A

Net income - preferred dividends /
Average common equity

Profitability

19
Q

Net operating margin percentage

A

Net operating income /
Net sales

Profitability

20
Q

Gross (profit) Margin Percentage

A

Gross (profit) margin /
Net sales

Profitability

21
Q

Operating cash flow per share

A

Operating cash flow /
Common shares outstanding

Profitability

22
Q

Degree of Financial Leverage

A

Earnings before interest and taxes /
Earnings before taxes

Investor

23
Q

Earnings per share

A

Net income - Preferred dividends /
Weighted average number of common shares outstanding

Investor

24
Q

Price/ earnings ratio

A

Market price per share /
Diluted earnings per share

Investor

25
Q

Dividend payout ratio

A

Dividend per common share/
Diluted earnings per share

Investor

26
Q

Dividend yield

A

Dividends per common share /
Market price per share

Investor

27
Q

Book value per share

A

Total stockholders’ equity - preferred stock /
Number of common shares outstanding

Investor

28
Q

Debt/Equity

A

total Liabilities /
Common stockholders’ equity

Long- term debt

29
Q

Debt ratio

A

total liabilities /
Total assets

Long-term debt

30
Q

Times interest earned

A

Earnings before taxes and interest /
Interest

Long-term debt

31
Q

Operating cash flow/total debt

A

Operating cash flow /
Total debt

Long -term debt

aud 1 (27 decks)

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