Ratios Flashcards
Working Capital Ratio
Current Assets / Current Liabilities
Acid Test Ratio (AKA Quick Ratio)
Cash + (Net Receivables) + Marketable securities
/
Current Liabilites
Times Interest Earned
(Net Income + Income Exp. + Income Tax)
/
Interest Expense
Accounts Receivable Turnover
(Net) Credit Sales
/
Average Accounts receivable (Beg. AR + End AR/ 2)
Number of days sales in Accounts Receivable Ratio
360 (or 365)
/
Account receivable turnover
Inventory Turnover
Cost of Goods Sold
/
Average Inventory
Number of days supply in Inventory
360 (or 365)
/
Inventory turnover
Securities defensive-Interval Ratio
(Cash + Receivables + Marketable Securities)
/
Average Daily cash expenditures
Profit margin (on sales)
Net Income
/
(Net) Sales
Return on total Assets
Net Income + (add back) Interest Expense (net of tax)
/
Average Total Assets
Return on Common Stockholders Equity
(Net Income - Preferred dividends for current per. Only)
/
Average Common Stockholders Equity
Earnings per Share
(Net income - preferred dividends for current period only)
/
Weighted average number of shares outstanding
Price earnings Ratio
Market Price for a common share
/
Earnings per (Common) share
Debt to Equity Ratio
Total liabilities
/
Total shareholders equity
Owners Equity Ratio
Shareholders Equity
/
Total Assets
Total Basis
Cash dividends to common shareholders
/
Net Income to common Shareholder
Per Share Basis
Cash Dividends per Common Share
/
Earnings per Common Share
Common Stock Yield
Dividend per Common Share
/
Market Price per Common Share
Return on Owners’ (ALL stockholders) Equity
Net Income
/
Average Stockholders Equity
Dividend Payout Ratio
Dividends Paid
/
Net Income
