RATIOS Flashcards

1
Q

RETURN ON EQUITY

A

NET INCOME / AVERAGE SHE

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2
Q

RETURN ON ASSET

A

NET INCOME / AVERAGE TOTAL ASSETS

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3
Q

GROSS PROFIT MARGIN

A

GROSS MARGIN / SALES REVENUE

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4
Q

NET PROFIT MARGIN

A

NET INCOME / SALES REVENUE

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5
Q

GROSS MARGIN

A

SALES - COGS

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6
Q

CURRENT RATIO

A

CURENT ASSETS / CURRENT LIABILITIES

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7
Q

QUICK RATIO

A

(CURENT ASSETS - INVENTORY - PREPAID EXPENSE) / CURRENT LIABILITIES

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8
Q

DEBT TO EQUITY RATIO

A

NET DEBT (TOTAL LIAB) / TOTAL SHE

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9
Q

CASH COVERAGE

A

CASH FLOW (OP. ACT.) BEFORE INT. AND TAXES / INTEREST PAID

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10
Q

EARNING PER SHARE (EPS)

A
(NET INCOME - PREFERRED SHARE) / 
# OF COMMON SHARE
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11
Q

PRICE PER EARNING

A

MARKET PRICE PER SHARE / EPS

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12
Q

DIVIDEND PAYOUT

A

DIVIDEND PER SHARE / EPS

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13
Q

DIVIDEND YIELD

A

DIVIDEND PER SHARE / PRICE PER SHARE

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14
Q

NET FREE CASH FLOW

A

CASH FLOW (OP. ACT.) - NET CAPITAL EXPENDITURES - DIVIDENDS ON PREF. SHARE

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15
Q

ACCOUNT RECEIVABLE TURNOVER

A

CREDIT SALES / AVERAGE ACCOUNT RECEIVABLE

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16
Q

AVERAGE COLLECTION PERIOD

A

365 / ACCOUNT RECEIVABLE TURNOVER

17
Q

INVENTORY TURNOVER

A

COGS / AVERAGE INVENTORY

18
Q

DAYS TO SELL

A

365 / INVENTORY TURNOVER

19
Q

ACCOUNT PAYABLE TURNOVER

A

CREDIT PURCHASES / AVERAGE ACC. PAYABLE

20
Q

PAYMENT PERIOD

A

365 / ACC. PAYABLE TURNOVER

21
Q

FIXED ASSETS TURNOVER

A

SALES / AVERAGE FIXED ASSETS

22
Q

TOTAL ASSET TURNOVER

A

SALES / AVERAGE TOTAL ASSETS

23
Q

WORKING CAPITAL

A

CURRENT ASSETS - CURRENT LIABILITIES

24
Q

TIMES INTEREST EARNED

A

EBIT / INTEREST EXPENSE