Ratios Flashcards
Current Ratio (Working Capital Ratio)
Current Assets / Current Liabilities
Acid-Test Ratio (Quick Ratio)
(Cash equivalents+marketable securities+accounts receivable) / current liabilities
Cash Ratios
(Cash equivalents + marketable securities) / current liabilities
Accounts Receivable Turnover
Net Credit sales / average net receivables
AR Turnover in Days
365 / Receivable Turnover
Or
Average net receivables /
(net credit sales / 365)
Inventory Turnover
COGS / Average Inventory
Inventory Turnover in Days
365 / Inventory Turnover
Or
Average Inventory /
(COGS / 365)
Operating Cycle
AR Turnover in days + inventory turnover in days
Working Capital Turnover
Sales / Average Working Capital
Total Asset Turnover
Net Sales / Average Total Assets
Accounts Payable Turnover
Purchases / Average Accounts Payable
Days in Accounts Payable
365 / AP Turnover
Or
Average Accounts Payable /
(Purchases / 365)
Net Profit Margin
Net income / net sales
Return on Total Assets
Net income / average total assets
Return on Assets
(NI / Net Sales) /
Net Sales / Avg Total Assets
Return on Investment
(NI + Int Exp (1-Tax rate)) /
Average (LT liabilities + Equity)
Return on Common Equity
(NI - Preferred Dividends) /
Average Common Equity
Net Operating Margin Percentage
Net operating income / net sales
Gross (Profit) Margin Percentage
Gross (profit) margin / net sales
Operating cash flow per share
Operating cash flow / common shares outstanding
Degree of Financial Leverage
EBIT / EBT
Earnings per Share
(NI - Preferred Dividends) /
Weighted Avg # Common Shares Outstanding
Price/Earnings Ratio
Market price per share /
Diluted earnings per share
Dividend Payout Ratio
Dividends per common share /
Diluted earnings per share
