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Flashcards in Ratios Deck (21):
1

Working Capital

Current Assets - Current Liabilities

2

Working Capital Ratio

Current Assets / Current Liabilties

3

Working Capital ratio is also called what?

Current Ratio

4

Acid-Test Ratio (Quick Ratio)

(Cash + Net Receivables + Marketable Securities) / Current Liabilities

5

Securities Defensive-Interval Raios

(Cash + Net Receivables + Marketable Securities) / Average Daily Cash Expenditures

6

Times Interest Earned

(Net Income + Interest Expense + Income Tax) / Interest Expense

7

Times Preferred Dividend Earned Ratio

Net Income / Annual Preferred Dividend Obligation

8

Accounts Receivable Turnover

Net Credit Sales / Average net AR

9

Number of Days' Sales in Average Receivables

Days in Year (ie 360) / AR Turnover Ratio

10

Inventory Turnover

COGS / Average Inventory

11

Number of Days' Supply in Inventory

Days in Year (ie 360) / Inventory Turnover Ratio

12

Days in Operating Cycle

Number of Days' in Sale in AR + Length Cycle Number of Days' Supply in Inventory

13

Profit Margin

Net Income / Net Sales

14

Return on Total Assets

(Net Income + Interest Expense (net of Tax Effect)) / Average Total Assets

15

Return on Common Stockholder's Equity

(Net Income - Preferred Dividend (for current period only)) / Average Common Stockholders' Equity

16

Return on Owners' Equity

Net Income / Average Stockholders' Equity

17

Earnings Per Share (basic formula)

(Net Income - Preferred Dividends (obligation for the period only)) / Weighted Average Number of Shares Outstanding

18

Price-Earnings Ratio (P/E Ratio)

Market Price of Common Stock / Earnings per (Common) Share (EPS)

19

Total Basis

Cash Dividends to Common Stockholders / Net Income to Common Stockholders

20

Per Share Basis

Cash Dividends per Common Share / EPS Common Share

21

Common Stock Yield

Divided per Common Share / Market Price per Common Share