Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Question Pool Accounting > Profitability Ratios > Flashcards

Profitability Ratios Flashcards

1
Q

Whats the formula of profit margin?

A

Net income / Net sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Whats the formula of Asset turnover?

A

Net Sales / Average total assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Whats the formula of the return on assets?

A

Net income / Average total assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Whats the formula of the return on ordinary shareholders equity?

A

Net income - preference dividends / Average ordinary shareholders equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Whats the formula for earnings per share?

A

(Net income - preference dividends) / Weighted average ordinary shares outstanding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Whats the formula for the price-earnings ratio?

A

Market price per share / earnings per share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Whats the formula for the payout ratio?

A

Cash dividends declared on ordinary shares / net income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly

Question Pool Accounting (16 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions