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Flashcards in Financial Analysis Formulas Deck (17)
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1

Rate of Return

 Profitability Ratio

2

Rate of return on Common Stockholders Equity

Profitability Ratio

3

Earnings per Share

 

Profitability Ratio

4

Price-Earnings Raio

 

Profitability Ratio

5

Yield on Common Stock

 

Profitabilty Ratio

Dividend per share/ Market Price per Share = Yield on Common Stock

6

Rate of return on total assets

 

 

Income before interest expense and income taxes /

Total Assets

 

Profitability Ratio

7

Asset Turnover

Net Sales /

Total Assets = Assets Turnover

 

Profitability Ratio

8

Number of Times Bond Interest Earned

Income Before bond interest and income taxes /

Bond interest cash requirement

 

 

Financial Strength Ratios

9

Ratio of Stockholders Equity to Total Equity

Stockholders Equity /

Total equities 

10

Ratio of Stockholders Equity to total liabilities

Stockholders equity /

total liabilties

 

 

Financial ratio

11

Book Value per share of stock

Common Stockholders equity /

Number of common shares

12

Working Capital

Current Assets - Current Liabilties = working capital

 

 

Liquidity Ratio

13

Current Ratio

Current Assets /

Current Liabilities = current ratios

 

 

Liquidity Ratio

14

Acid Test Ratio

Quick Assets /

Current Liabilities

15

Inventory Turnover

Cost of Goods Sold /

Average Inventory

 

Liquidity Ratio

16

Accounts receivable Turnover

17