Ratios Flashcards
(16 cards)
returns on sales
net income/net sale
return on assets
net income/total assets
return on equity
net income/total equity
earnings per share
net income/number of shares
current ratio
current assets/current liabilities
quick ratio
cash+marketable securities +accounts receivable/current liabilities
solvency ratio
net income+depreciation/total liabilities
debt to asset ratio
total liabilities/total assets
debt to equity ratio
total liabilities/equity
times interest earned ratio
earnings before interest and taxes/interest expense
average days sales
net annual sales/365
days receivable
accounts receivable/average days sales
inventory turnover
cost of goods sold/average inventory
days inventory
365/inventory turnover
risk of leverage ROE
net income/total equity %
interpretation of financial statements
revenue cost of goods sold gross profitability margin general and administrative expense sales and marketing Earnings before interest tax depreciation and amortization amortization EBIT interest EBT tax net profit
