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SD: Finance, Accounting, Entrepre > Financial Ratio/Equations > Flashcards

Financial Ratio/Equations Flashcards

1
Q

Debt Ratio

A

measure of leverage(degree to which company has borrowed money) - (total liabilities / total assets)

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2
Q

measure of leverage(degree to which company has borrowed money) - (total liabilities / total assets)

A

Debt Ratio

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3
Q

Current Ratio

A

measure of liquidity - ( Current Assets / Current Liabilities)

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4
Q

measure of liquidity - ( Current Asset / Current Liabilities)

A

Current Ratio

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5
Q

Return On Sale

A

measure of profitability (profit earned per dollar invested) - ( Net Income / Sales )

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6
Q

measure of profitabilty ( Profit earned per dollar invested) - ( Net Income / Sales )

A

Return On Sale

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7
Q

Asset Turnover

A

measure of company efficiency, for every dollar of asset the company generates x amount of dollars in sales - ( S ales / Total Assets )

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8
Q

measure of company efficiency, for every dollar of asset the company generates x amount of dollars in sales - ( Sales / Total Assets )

A

Asset Turnover

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9
Q

Return of Equity

A

measure of amount of profit earned per dollar of investment - ( Net Income / StockHolder Equity )

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10
Q

measure of amount of profit earned per dollar of investment - ( Net Income / StockHolder Equity )

A

Return on Equity

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11
Q

Price Earning Ratio

A

measure of growth potential, earnings stability, management capabilities - ( Market-Value of shares / Net Income )

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12
Q

measure of growth potential, earnings stability, management capabilities - ( Market-Value of shares / Net Income )

A

Price Earning Ratio

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13
Q

(CAPM) Capital Asset Pricing Model

A

(Risk-free rate) + ( (beta)(equity risk premium) ) = expected return

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14
Q

(Risk-free rate) + ( (beta)(equity risk premium) ) = expected return

A

(CAPM) Capital Asset Pricing Model

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15
Q

Equity Risk Premium

A

( Market Return - Risk Free Rate)

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16
Q

( Market Return - Risk Free Rate)

A

Equity Risk Premium

17
Q

Beta

A

Covariance of: Company Return, Market Return / Variance of Market Return

18
Q

Covariance of: Company Return, Market Return / Variance of Market Return

A

Beta

SD: Finance, Accounting, Entrepre (8 decks)

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