Ratios - L&S, P&E Flashcards
Current Ratio
Current Assets / Current Liabilities. Measures working capital
Acid Test
(Cash + Net A/R + Mktable Securites) / Current Liabilities. Measures quick liquidity
Securities Defensive Interval Ratio
(Acid Assets) / Average Daily Cash Expenditures.
Times Preffered Dividend Earned Ratio
Net Income / Annual Preffered Dividend Obligation
AR Turnover Ratio
Net Credit Sales / Average Net AR
of Days Sales in AR
365 / AR Turnover Ratio
Inventory Turnover Ratio
COGS / Average Inventory
of Days Supply in Inventory
365 / Inventory Turnover Ratio
Days in Operating
of Days Sales in AR + Length Cycle # of Days Supply in Inventory
Profit Margin on Sales Ratio
Net Income / Net Sales
Return on Total Assets Ratio
NI / Total Assets. Indicates the efficiency with which invested resources are used.
Return on Common Stockholders Equity
(NI - Preferred Dividend / Avg Common Stockholders Equity) x 100.
Return on owners equity
NI / Avg Stockholders Equity
Earnings Per Share
NI - Preferred Divs / WA # of shares outstanding
Price / Earnings Ratio
Mkt.Price per common share / Earnings per share
