Ratios Flashcards
NET PROFIT MARGIN
(Net income/Sales)*100
TOTAL ASSET TURNOVER
Sales/Tot. Assets
Sales / Avg total assets -> (variation y1+y2)/2
RETURN ON TOTAL ASSETS
(Net income / Avg Tot. Assets )*100
CURRENT RATIO
Current Assets / Current Liabilities
ACID-TEST RATIO
(Cash+Cash equivalents+ACC. Receivables)/ Current liabilities
DAYS TO SELL INVENTORY
(Average Inventory / Cost of goods)*360
COLLECTION PERIOD
(Average Acc Receivables / sales )*360
TOTAL DEBT TO TOTAL EQUITY
(Total current liabilities + long term debt+ other liabilities) / stockholders’ equity
TOTAL DEBT TO TOTAL ASSETS
(Liabilities / Assets)* 100
LONG TERM DEBT TO EQUITY
Long term debt / total equity
TIMES INTEREST EARNED
Income from operation / interest expenses
RETURN ON TOTAL ASSETS
(Net income+interest expenses (1-tax rate)/average assets )*100
RETURN ON COMMON EQUITY
[Net income - preferred dividends (to the preferred shareholders)/ average common equity]*100
GROSS PROFIT MARGIN RATIO
(Gross profit / sales )*100
OPERATING PROFIT MARGIN RATIO
(Income before interest and taxes (gross profit) / sales )*100
GROSS PROFIT
Sales - Cost of goods sold
OPERATING PROFIT MARGIN RATIO
()Operating) gross profit/sales )*100
OPERATING PROFIT
Net sales-expenses of the IS (not including interest income, interest expenses and tax on earnings)
PRETAX PROFIT MARGIN RATIO
(Earnings before tax (pretax income) / sales )*100
NET PROFIT MARGIN RATIO
(Net income / sales) *100
CASH TURNOVER
Sales / cash and other types of cash
Avg -> sales / [(cash y1+cash y2)/2]
ACCOUNTS RECEIVABLE TURNOVER
Sales/ Average acc receivables [(y1+y2)/2]
INVENTORY TURNOVER
Cost of goods sold / average inventory [(variation (y1+y2)/2]
WORKING CAPITAL TURNOVER
Sales/ average working capital
WORKING CAPITAL
Current assets- current liabilities
PPE / FIXED ASSETS TURNOVER
Sales / average total assets
TOTAL ASSETS TURNOVER
Sales / average total assets
PRICE TO EARNINGS RATIO
Market net price / earnings per share
EARNINGS PER SHARE
Net income / n of shares in the market
EARNINGS PER SHARE
Net income /(equity / value per share)
EARNINGS YIELD
(Earnings per share / market net price per share)*100
DIVIDEND YIELD
(Dividend / market net price per share)*100
DIVIDEND PAYOUT RATE
(Dividend per share / earnings per share)*100
PRICE TO BOOK RATIO
Market price per share (value)/book value per share
RETURN ON INVESTED CAPITAL (ROI)
Income/ invested capital
RETURN ON EQUITY (ROE)
[Net income /(equity+retained earnings)]*100
RETURN ON NET OPERATING ASSETS
NOPAT / [(beginning NOA+ending NOA)/2]
NOPAT
Operating income * (1-tax rate)
Net profit + net interest)*(1-tax rate
NOA
Net operating assets
Operating assets - current liabilities
RETURN ON COMMON EQUITY (ROCE)
Net income- preferred dividends
[(Beginning equity +ending equity)/2]
Equity =stockholders’ equity - preferred stocks
ROCE 2
RNOA + (LEV *spread)
Adjusted profit margin* assets turnover * leverage
ROCE 3
(Net income - preferred dividends )/ average common equity
ADJUSTED PROFIT MARGIN
(Net income - preferred dividends)/sales
ASSET TURNOVER
Sales / average assets
LEVERAGE
Average assets / average common equity
RETURN ON OPERATING ASSETS (ROA)
(Net income /total assets )*100
RETURN ON OPERATING ASSETS 2
Operating profit margin * operating assets turnover
NOPAT / avg NOA)= (NOPAT/sales)* (Sales/ avg NOA
RNOA
(NOPAT / sales )sales / average OA(1+OLLEV)
OA = operating assets OLLEV = operating liabilities leverage ratio (operating liabilities/ NOA)
OPERATING PROFIT MARGIN (OPM)
NOPAT/sales
PRETAX PM
Pretaxes sales PM+pretax other PM
PRETAXES SALES PM
(Gross margin / sales)-(selling expenses/ sales)-(administrative expenses/sales)-(R&D/sales)
PRETAX OTHER PM
(Equity income / sales)+-(special items / sales)
EQUITY GROWTH RATE
(Net income - preferred dividends - dividends payout)/average common stockholders’ equity
SUSTAINABLE EQUITY GROWTH RATE
ROCE (1-Payout rate)
LEVERAGE 2
NFO/Equity
