Vocab Flashcards
Net income after Federal Income Tax divided by the number of outstanding shares of stock
Earnings Per Share
A ration that measures the ability of a business to generate income
Profitability Ratio
A ratio that measures a corporation’s financial performance in relation to the market value of its stock
Market Ratio
The relationship between the market value per share and earnings per share of a stock
Price-Earning Ratio
A ratio that measures the ability of a business to pay its long-term liabilities
Solvency Ratio
A ratio that measures the ability of a business to pay its current financial obligations
Liquidity Ratio
A comparison of one item on a financial statement with the same item on a previous Financial statement
Horizontal Analysis
The relationship between dividends per share and market price per share
Dividend Yield
A standard used to compare financial performance
Benchmark
Total operating expenses as a percent of net sales
Operating Expense Ratio
A ratio that measures the relationship of current assets to current liabilities
Current Ratio
The amount of total Current Assets less total Current liabilities
Working Capital
Financial statements that provide information for multiple fiscal periods
Comparative Financial Statements
Net income after Federal Income Tax as a percent of net sales
Profit Margin
Cash and other current assets that can be quickly converted into cash
Quick Assets
An analysis of changes over time
Trend Analysis
Income from Operations as a percent of net sales
Operating Margin
Total liabilities divided by total assets
Debt Ratio
A ratio that measures the relationship of quick Assets to current liabilities
Quick Ratio
Gross Profit as a percent of net sales
Gross Margin
