Ratios Flashcards
Current ratio
Current assets/current liabilities
Working capital
Current assets- current liabilities
Quick ratio
(Cash+market securities+receivables)/current liabilities
Current cash debt coverage
Cash provided by operating activities/average current liabilities
Total liabilities to equity
Total liabilities/total stockholders equity
Cash debt coverage
Cash provided by operating activities/average total liabilities
Free cash flow
Cash provided by operating activities- capital expenditures - cash dividends
Return on assets
Net income/ average total assets
Profit margin
Net income/net sales
Asset turnover
Net sales/average total assets
Accounts receivable turnover
Net credit sales/average accounts receivable
Average days to collect receivables
365/accounts receivable turnover
Inventory turnover
Cost of goods sold/average inventory
Average days in inventory
365/inventory turnover
Financial leverage
Average total assets/average stockholders equity
