Ratios Flashcards
Total asset turnover ratio
Total sales / total assets
Accounts receivable turnover
Total sales / average accounts receivable
Return on Common Stockholder equity
(net income - PS dividend) / average common stockholder equity
Average common stockholder equity (CSE) = common stock + retained earnings
Book value per share of common stock
Total stockholder equity - total preferred stock - P/S dividend in arrears - P/S liquidation premium = total book value
Book value per share
total book value / shares outstanding
Dividends per share
dividends issued / common stock outstanding (weighted average)
Basic EPS
(net income - PS dividend) / weighted average common stock outstanding (WACS)
Dividends per share payout ratio
dividends per share / earnings per share
Equity ratio
total liabilities / total assets
Return on asset ratio
net income / total assets
Return on equity ratio
net income/ total stockholders equity
Current-year operating cycle
days’ sales in inventory plus days’ sales in accounts receivable
Diluted EPS
(net income - PS dividend + potential CS) / weighted average common stock outstanding (WACS) plus extra shares
Debt to equity ratio
Total liability / total shareholder equity
Profit margin in sales
Net income / sales
