Vocab Flashcards
Ratio that measures the ability of a business to generate income
Profitability ratio
Standard used to compare financial performance
Benchmark
Financial statements that provide info for muitple fiscal periods
Comparative financial statements
An analysis of changes over time
Trend analysis
Net income after federal income tax as a percent of net sales
Profit margin
Gross profit as a percent of net sales
Gross margin
Income from operations as a percent of net sales
Operating margin
Total operating expenses as a percent of net sales
Operating expense revenue
Ratio that measures the ability of a business to pay its long term liabilities
Solvency ratio
Total liabilities divided by total assets
Debt ratio
Comparison of one item on a financial statement with the same item on a previous periods financial statement
Horizontal analysis
Net income after federal income tax divided by the number of outstanding shares of stock
Earnings per share
Ratio that measures a corporations financial performance in relation to the market value of its stock
Market ratio sales
Relationship between dividends per share and market price per share and
Dividend yield
Relationship between the market value per share and the earnings per share of a stock
Price earnings ratio
