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ACC 200 Ratios Flashcards

(48 cards)

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1
Q

NI/Sales

A

Return on Sales

(aka. “Net Margin”)

Number of pennies earned each year per dollar of sales

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2
Q

TL/TE

Proportion of equity and debt used to finance assets.

A

Debt to Equity Ratio

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3
Q

Measures of Stock Value

A
  1. Book Value per Share
  2. Price-Earnings Ratio (PE Ratio)
  3. Return on Sales
  4. Return on Equity
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4
Q
  1. Earnings Per Share (EPS)
A

Measures of Profitability

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5
Q

NI/OE

Number of pennies earned during the year per dollar invested

A

Return on Equity

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6
Q

Measures of Profitability

A
  1. Earnings Per Share (EPS)
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7
Q

TL/TE

A

Debt to Equity Ratio

Proportion of equity and debt used to finance assets.

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8
Q

Return on Sales

(aka. “Net Margin”)

A

NI/Sales

Number of pennies earned each year per dollar of sales

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9
Q

Credit Sales/AR

Number of times AR is converted to cash in a year

A

AR Turnover

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10
Q

Price-Earnings Ratio (PE Ratio)

A

Total Market Value of Shares/NI

  • OR -

Market Value (Share)/EPS

Indicates growth potential! Amount investors are willing to pay for EACH DOLLAR of EARNINGS.

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11
Q

Debt to Equity Ratio

A

TL/TE

Proportion of equity and debt used to finance assets.

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12
Q
  1. AR Turnover
  2. Days Sales in AR
  3. Inv. Turnover
  4. Days Sales in Inv.
A

Measures of Management

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13
Q

365/AR Turnover

Avg cash collection period in days

A

Days Sales in AR

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14
Q

Days Sales in AR

A

365/AR Turnover

Avg cash collection period in days

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15
Q

NI/Sales

Number of pennies earned each year per dollar of sales

A

Return on Sales

(aka. “Net Margin”)

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16
Q

COGS/Inv.

A

Inv. Turnover

Number of times Inv. is sold and replaced in a year

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17
Q

Measures of Leverage

A
  1. Debt Ratio
  2. Debt to Equity Ratio
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18
Q

NI/OE

A

Return on Equity

Number of pennies earned during the year per dollar invested

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19
Q

Return on Equity

A

NI/OE

Number of pennies earned during the year per dollar invested

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20
Q

CA/CL

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A

Current Ratio

Number of times CA could cover CL

21
Q

Market Value (Share)/EPS

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A

Price-Earnings Ratio (PE Ratio)

Indicates growth potential! Amount investors are willing to pay for EACH DOLLAR of EARNINGS.

22
Q
  1. Current Ratio
  2. Acid Test Ratio (Quick Ratio)
Study These Flashcards
A

Measures of Liquidity

23
Q

Book Value per Share

Study These Flashcards
A

OE/#Shares Stock

Company’s per-share value based on EQUITY

24
Q
  1. Debt Ratio
  2. Debt to Equity Ratio
Study These Flashcards
A

Measures of Leverage

25
**AR Turnover**
**Credit Sales/AR** ## Footnote Number of times AR is converted to cash in a year
26
**NI/#Shares Stock** ## Footnote Amount of NI per share *(also how much would be distributed as dividends if none kept for R/E)*
**Earnings Per Share (EPS)**
27
**CA/CL** ## Footnote Number of times CA could cover CL
**Current Ratio**
28
Measures of **Liquidity**
1. Current Ratio 2. Acid Test Ratio (Quick Ratio)
29
**Current Ratio**
**CA/CL** ## Footnote Number of times CA could cover CL
30
**OE/#Shares Stock** ## Footnote Company's _per-share value_ based on EQUITY
**Book Value per Share**
31
**COGS/Inv.** ## Footnote Number of times Inv. is sold and replaced in a year
**Inv. Turnover**
32
**OE/#Shares Stock**
**Book Value per Share** Company's _per-share value_ based on EQUITY
33
**Earnings Per Share (EPS)**
**NI/#Shares Stock** ## Footnote Amount of NI per share *(also how much would be distributed as dividends if none kept for R/E)*
34
**Total Market Value of Shares/NI** ## Footnote - OR - **Market Value** (Share)**/EPS** *Indicates growth potential! _Amount investors are willing to pay for EACH DOLLAR of **EARNINGS**._*
**Price-Earnings Ratio (_PE Ratio_)**
35
**Days Sales in Inv.**
**365/Inv. Turnover** ## Footnote Average days inventory is held before being sold
36
1. Book Value per Share 2. Price-Earnings Ratio (**PE** Ratio) 3. Return on Sales 4. Return on Equity
Measures of **Stock Value**
37
**NI/#Shares Stock**
**Earnings Per Share (EPS)** Amount of NI per share *(also how much would be distributed as dividends if none kept for R/E)*
38
**TL/TA**
**Debt Ratio** Percentage of funds from debt to purchase assets
39
**Credit Sales/AR**
**AR Turnover** Number of times AR is converted to cash in a year
40
**Inv. Turnover**
**COGS/Inv.** ## Footnote Number of times Inv. is sold and replaced in a year
41
**Debt Ratio**
**TL/TA** ## Footnote Percentage of funds from debt to purchase assets
42
**365/Inv. Turnover**
**Days Sales in Inv.** Average days inventory is held before being sold
43
**Total Market Value of Shares/NI** ## Footnote - OR - **Market Value** (Share)**/EPS**
**Price-Earnings Ratio (_PE Ratio_)** *Indicates growth potential! _Amount investors are willing to pay for EACH DOLLAR of **EARNINGS**._*
44
**365/Inv. Turnover** ## Footnote Average days inventory is held before being sold
**Days Sales in Inv.**
45
**TL/TA** ## Footnote Percentage of funds from debt to purchase assets
**Debt Ratio**
46
Measures of **Management**
1. AR Turnover 2. Days Sales in AR 3. Inv. Turnover 4. Days Sales in Inv.
47
**365/AR Turnover**
**Days Sales in AR** Avg cash collection period in days
48
**Total Market Value of Shares/NI**
**Price-Earnings Ratio (_PE Ratio_)** *Indicates growth potential! _Amount investors are willing to pay for EACH DOLLAR of **EARNINGS**._*

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