Financial Accounting Ratios Flashcards

(19 cards)

1
Q

Accounts Receivable Turnover

A

Average Accounts Receivable

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2
Q

Inventory Turnover

A

Average Inventory

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3
Q

Total Asset Turnover

A

Average Total Assets

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4
Q

Debt Ratio

A

Total Assets

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5
Q

Equity Ratio

A

Total Assets

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6
Q

Debt-to-Equity

Ratio

A

Total Equity

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7
Q

Times Interest Earned

A

Income (pre interest exp. & income taxes)
———–—————-
Interest Expense

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8
Q

Profit Margin Ratio

A

Net Sales

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9
Q

Gross Margin Ratio

A

Net Sales

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10
Q

Return on Total Assets

A

Average Total Assets

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11
Q

Days Sales Uncollected

A

Accounts Receivable
——————– *365
Net Sales

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12
Q

Days Sales in Inventory

A

Ending Inventory
——————– *365
Cost of Goods Sold

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13
Q

Basic Earnings Per Share

A

Weighted Average Common Shares Outstanding

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14
Q

Price-Earnings Ratio

A

Earnings per Share

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15
Q

Dividend Yield

A

Market Price Per Share

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16
Q

Book Value per Common Share

A

# of Common Shares Outstanding

17
Q

Return on Common Stockholders Equity

A

Average Common Stockholders Equity

18
Q

Acid-Test Ratio

A

Current Liabilities

19
Q

Current Ratio

A

Current Liabilities