Financial Ratios Flashcards

1
Q

Debt Ratio

A

Debt / Total Assets = Debt %

Solvency Rate

Note - Debt Ratio is NOT the same as Debt-Equity ratio.

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2
Q

Debt-Equity Ratio

A

Debt / SHE = Debt - Equity %

Leverage

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3
Q

ROI

A

Net Income / Investments = ROI

Profitability ratio b/c it tells you how much you got in return for investing

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4
Q

ROE

A

Net Income / SHE = ROE

Profitability ration b/c it tells you how much you got in return as an Equity shareholder

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