Financial Statement Analysis Flashcards
1
Q
Current Ratio
A
Current assets divided by current liabilities
2
Q
Quick (acid test) ratio
A
Quick assets (Cash, marketable securities and account receivable) divided by current liabilities
3
Q
Inventory turnover ratio
A
Cost of goods sold divided by average inventory
4
Q
Debt to equity
A
Total liabilities (total debt) divided by stockholders equity
5
Q
Earning per Share
A
Net income minus preferred dividends by weighted shares outstanding
6
Q
Book value per common share
A
Common stockholders’ equity divided by number of common outstanding
