ratio turnover and liquidity Flashcards
(14 cards)
cash from operating activities to current liabilities
current liabilities 200
current assets 300
net cash from operating activities 100
net cash provided by operating activites / current liabilities
100/200 = .5
Rate of return on total assets tax rate .40 interest 50 net income before taxes 125 year 1 assets 1000 year 2 assets 1050
net income plus interest expense (net of tax effect)/ Avg. total assets
A. 0.1
return on common stockholders equity dividends 15 net income 75 year 1 common stockholder equity 250 year 2 common stockholder equity 300
net income less preferred dividends / average common stockholder equity
A. 0.22
debt ratio
total assets 1050
total liabilities 650
stockholder equity 400
total liabilities / total assets
A. 1.62
debt / equity ratio
total assets 1050
total liabilities 650
stockholder equity 400
total liabilities/ total assets
=1.62
equity ratio
total assets 1050
total liabilities 650
stockholder equity 400
total stockholder equity / total assets
=.038
time interest earned days in a year 365 interest expense 50 income before taxes and income 175 income after taxes 105
income before interest expenses and taxes/ interest expenses
3.5
price earning ratio
earning per share 3
market price per common share 17
income after taxes 105
market price per common /
share earning per share
=5.67
dividend yield
dividend per common share (30000 share)
earning per share 3
market price per common share 17
dividend per common share /
market price per common share
=0.03
profit margin on sales
net income 75
earning per share 3
sales 1000
net income /sales
0.08
Book value per common share
common stockholder equity $300,000
common share outstanding 20,000 share
current liabilities $650,000
common stockholder equity $300,000/
common share outstanding 20,000 share
$15
Cash flow per common share
non cash adjustment 25
income 75
common share outstanding 20,000 share
income + non cash adjustment /
common share outstanding
$5
payout ratio to common shareholders
common dividend 10
income 75
preferred dividends 15
common dividend 10 /
income 75 -preferred dividends 15
=0.17
cash from operating activities to net income
net income 75
cash provided by operating activities 100
common dividend 10
cash provided by operating activities 100/
net income 75
=1.33
