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Related Flashcards
Related Topics
Cards In This Set
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A/R Turnover
Purpose:: quantify a firm's effectiveness in extending credit as well as collecting debts. |
Net Sales / Avg. A/R, Net
Net Sales (found on the Statement of Operations) Avg. A/R, Net (found on Income Statement) Purpose:: quantify a firm's effectiveness in extending credit as well as collecting debts. Read more: /terms/r/receivableturnoverratio.asp#ixzz1fgzJ3GmE |
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Inventory Turnover Ratio
(Measures how quickly a company sales its inventory) |
COGS / AVG. Inventory
(Measures how quickly a company sales its inventory) |
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Days Sales in Inventory
(Measures how many days it takes to sale inventory) |
(Ending inventory / COGS)x365
(Measures how many days it takes to sale inventory) |
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Acid Test (Quick Ratio)
(Measures the ability for a company to immediately pay its debts. |
(Cash + Short-term investments +Current Receivables)/Current Liabilities
(Measures the ability for a company to immediately pay its debts. |
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Total Asset Turnover
(Measure of operating efficiency) |
Net sales / average total assets
(Measure of operating efficiency) |
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Debt-to-Equity
(Measures the amount of liabilities to every $1 invested by its owners) |
Total liabilities / Total Equity
(Measures the amount of liabilities to every $1 invested by its owners) |
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Earnings per Share
(Measures the return on investment that is based on the number of shares outstanding instead of the dollar amounts reported on the balance sheet. |
(Net Income-Preferred Dividends) / Weighted-Avg. common shares outstanding OR
(Net Income-Preferred Stock) / Outstanding Common Stock (Measures the return on investment that is based on the number of shares outstanding instead of the dollar amounts reported on the balance sheet. |
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Dividend Yield Ratio
(Measures the dividend paying performance of different investment alternatives) |
Annual Cash Dividends per share / Market Price Per Share
(Measures the dividend paying performance of different investment alternatives) |
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* Gross Margin Ratio
(think about what gross margin includes) |
(Net sales - COGS) / Net Sales
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* Current Ratio
(Measures the ability of a company to pay its debt as they become due) - Should be at least 2 |
Current Assets / Current Liabilities
(Measures the ability of a company to pay its debt as they become due) - Should be at least 2 |
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*Debt Ratio
(clue is in the title of the ratio) |
Total Liabilities / Total Assets
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*Return on Assets
(Measures the ability to use assets effectively to produce income) |
Net incomes / avg total assets
(Measures the ability to use assets effectively to produce income) |
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Return on Shareholder's Equity
(How much income was earned for every dollar invested) |
(Net Income - Preferred Dividends) / Avg. common stockholder's equity
(How much income was earned for every dollar invested) |
