Ratios manu Flashcards
Gross profit margin
gross profit / sales = %
Operating profit margin
EBIT/sales = % or EBITDA/sales = %
Net profit margin
Net income/sales = %
Return on Assets
Net income/total assets = %
Return on Equity
Net income / shareholders equity = %
Earnings per share (EPS)
(Net income - dividends on preferred shares)/ Weighted average number of common shares outstanding = $
Diluted earnings per shar
(Net income - dividends on preferred shares)/ (Weighted average number of common shares outstanding + common shares issued if dilutive instruments were converted) =$
Price to earnings ratio P/E
Share price/ Earnings per share
Days accounts payable outstanding
Accounts payable / purchases * 365 days = nb of days
Accounts payable turnover
Purchases/accounts payable = number of times
Days inventory outstanding
inventory/cost of sales * 365 days = nb of days
Inventory turnover
Cost of sales / inventory = nb of times
Days of sales outstanding
Accounts receivable / sales * 365 days = nb of days
Receivable turnover
Sales / accounts receivable = nb of times
Operating conversion cycle
Days inventory outstantding + days sales outstanding
cash conversion cycle
time to sell + customer collection time - days payable outstanding
Asset turnover
Revenues / total assets = nb of times
current ratio
Current assets / current liabilities
Quick ratio
(cash + cash equivalents + accounts receivables) / current liabilities
Acid test (cash ratio)
( cash + cash equivalents + current investments ) / current liabilities
Debt ratio
total liabilities / total assets = %
