Ratios Flashcards
(18 cards)
1
Q
Measures of liquidity
A
- Current ratio
2
Q
Measures of leverage
A
- Debt ratio
3. Debt to equity ratio
3
Q
Measures of management
A
- AR Turnover
- Days Sales in AR
- Inventory turnover
- Days sales in Inventory
4
Q
Measures of profitability
A
- Earnings per share
5
Q
Measures of stock value
A
- Book value per share
- Pride earnings ratio
- Return on sales
- Return on equity
6
Q
- Current Ratio
A
Current assets / current liabilities
7
Q
- Debt Ratio
A
Total liabilities / total assets
8
Q
- Debt to equity ratio
A
Total liabilities / total owners equity
9
Q
- AR Turnover
A
Net credit sales revenue / Average balance of AR during period
10
Q
- Days sales in AR
A
365 days / A/R Turnover
11
Q
- Inventory turnover
A
CoGS / average inventory balance
12
Q
- Days sales in Inventory
A
365 / Inventory Turnover
13
Q
- Earnings per share
A
Net income / #of shares of stock outstanding
14
Q
- Book value per share
A
Total assets - liabilities (OE) / # of shares of stock outstanding
15
Q
- Price Earnings Ratio
A
Market value per share / earnings per share
OR
total Market value of shares / net income
16
Q
- Return on sales
A
Net income / sales
17
Q
- Return on equity
A
Net income / owners equity
20% or more is very good
10-20% is normal
Less than 10% is not good
18
Q
- Asset turnover
A
Sales / total asset
