Accounting Formulas Flashcards
(23 cards)
Gross Profit/Gross Margin
Sales Revenue - COGS
Discounts on Bonds Payable
Face Value - Issue Price
Carrying Value
Face Value - Discount on BP
Interest Expense on Bonds
Carrying Value x Market Rate
Interest Payment
Face Value x Coupon Rate
Working Capital
Current Assets - Current Liabilities
Measures ability to pay current liabilities
Current Ratio
Current Assets/Current Liabilities
Measures ability to pay current liabilities
Quick Ratio
(Cash + Short-term Investments + Net Current Receivables)/Current Liabilities
Measures ability to pay current liabilities
Inventory Turnover
COGS/Average Inventory
Measures turnover and cash conversion
Accounts Receivable Turnover
Net Sales/Average Net AR
Measures turnover and cash conversion
Accounts Payable Turnover
COGS/Average AP
Measures turnover and cash conversion
Debt Ratio
Total Liabilities/Total Assets
Measures leverage
Times-Interest-Earned
Income from Operations/Interest Expense
Measures leverage
Gross Profit %
Gross Profit/Net Sales
Measures profitability
Operating Income %
Operating Income/Net Sales
Measures profitability
Return on Sales (Net Profit Margin)
Net Income/Net Sales
Measures profitability
Asset Turnover
Net Sales/Average Total Assets
Measures profitability
Return on Assets
(Net Income + Interest Expense)/Average Total Assets
Measures profitability
Return on Common Shareholders’ Equity
(Net Income - Preferred Dividends)/Average Common Shareholders’ Equity
Measures profitability
Earning per Share
(Net Income - Preferred Dividends)/Average # of Outstanding Common Shares
Measures profitability
Price/Earnings Ratio
Market Price per Share?Earnings per Share
Analyzing Stock as an Investment
Dividend Yield
Dividends per Share of Common Stock/Market Price per Share of Common Stock
Analyzing Stock as an Investment
Book Value/Share of Common Stock
(Total Equity - Preferred Equity)/Weighted Average # of Common Shares Outstanding
