Chapter 6 Flashcards
(22 cards)
Current ratio
current assets over current liabilities
liquidity ratio
(Cash + marketable securities + receivables)/ current liabilities
AR turnover
net credit sales/ average accounts receivable
Inventory turnover
COGS/average inventory
AP turnover
inventory purchases/ average accounts payable
DSO
365/ AR turnover
DIO
365/Inventory Turnover
DPO
365/AP turnover
CCC
DIO+DSO-DPO
Long term debt to asset
Long term debt/ total assets
Long term debt to tangible assets
Longterm debt/total tangible assets
Interest coverage
operating income before interest and taxes/Interest expense
Operating Cashflow to total liabilities
Cash flow from continuing operations/(Average current liabilities+long term debt)
ROA
Net income/average total assets
Adjusted ROA
EBI/average assets
PM
EBI/sales
Asset turnover
Sales/average assets
ROCE
(net income- preferred dividends)/Average common SE
ROCE adjusted
(NI attributable to common shareholders - prefered dividends)/Average equity attributable to common shareholders
ROCE disaggregation
ROA x FL x NCIR
FL
Average total assets/ averate total SE
NCIR
(NI attributable to Common SE/net income)/(Average equity attributable to Common SE/average total SE)
