Ratios Flashcards
(55 cards)
NET PROFIT MARGIN
(Net income/Sales)*100
TOTAL ASSET TURNOVER
Sales/Tot. Assets
Sales / Avg total assets -> (variation y1+y2)/2
RETURN ON TOTAL ASSETS
(Net income / Avg Tot. Assets )*100
CURRENT RATIO
Current Assets / Current Liabilities
ACID-TEST RATIO
(Cash+Cash equivalents+ACC. Receivables)/ Current liabilities
DAYS TO SELL INVENTORY
(Average Inventory / Cost of goods)*360
COLLECTION PERIOD
(Average Acc Receivables / sales )*360
TOTAL DEBT TO TOTAL EQUITY
(Total current liabilities + long term debt+ other liabilities) / stockholders’ equity
TOTAL DEBT TO TOTAL ASSETS
(Liabilities / Assets)* 100
LONG TERM DEBT TO EQUITY
Long term debt / total equity
TIMES INTEREST EARNED
Income from operation / interest expenses
RETURN ON TOTAL ASSETS
(Net income+interest expenses (1-tax rate)/average assets )*100
RETURN ON COMMON EQUITY
[Net income - preferred dividends (to the preferred shareholders)/ average common equity]*100
GROSS PROFIT MARGIN RATIO
(Gross profit / sales )*100
OPERATING PROFIT MARGIN RATIO
(Income before interest and taxes (gross profit) / sales )*100
GROSS PROFIT
Sales - Cost of goods sold
OPERATING PROFIT MARGIN RATIO
()Operating) gross profit/sales )*100
OPERATING PROFIT
Net sales-expenses of the IS (not including interest income, interest expenses and tax on earnings)
PRETAX PROFIT MARGIN RATIO
(Earnings before tax (pretax income) / sales )*100
NET PROFIT MARGIN RATIO
(Net income / sales) *100
CASH TURNOVER
Sales / cash and other types of cash
Avg -> sales / [(cash y1+cash y2)/2]
ACCOUNTS RECEIVABLE TURNOVER
Sales/ Average acc receivables [(y1+y2)/2]
INVENTORY TURNOVER
Cost of goods sold / average inventory [(variation (y1+y2)/2]
WORKING CAPITAL TURNOVER
Sales/ average working capital
