Ratios - L&S, P&E Flashcards Preview

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Flashcards in Ratios - L&S, P&E Deck (21)
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1

Current Ratio

Current Assets / Current Liabilities. Measures working capital

2

Acid Test

(Cash + Net A/R + Mktable Securites) / Current Liabilities. Measures quick liquidity

3

Securities Defensive Interval Ratio

(Acid Assets) / Average Daily Cash Expenditures.

4

Times Preffered Dividend Earned Ratio

Net Income / Annual Preffered Dividend Obligation

5

AR Turnover Ratio

Net Credit Sales / Average Net AR

6

# of Days Sales in AR

365 / AR Turnover Ratio

7

Inventory Turnover Ratio

COGS / Average Inventory

8

# of Days Supply in Inventory

365 / Inventory Turnover Ratio

9

Days in Operating

# of Days Sales in AR + Length Cycle # of Days Supply in Inventory

10

Profit Margin on Sales Ratio

Net Income / Net Sales

11

Return on Total Assets Ratio

NI / Total Assets. Indicates the efficiency with which invested resources are used.

12

Return on Common Stockholders Equity

(NI - Preferred Dividend / Avg Common Stockholders Equity) x 100.

13

Return on owners equity

NI / Avg Stockholders Equity

14

Earnings Per Share

NI - Preferred Divs / WA # of shares outstanding

15

Price / Earnings Ratio

Mkt.Price per common share / Earnings per share

16

Common Stock Dividends Pay out Ratio

Cash Divs to Common Shareholders / NI to Common Shareholder

17

Debt to Equity Ratio

Total Liabilities / Total Shareholders Equity

18

Owners Equity Ratio

Shareholders equity / Total Assets

19

Debt Ratio

Total Liabilities / Total Assets

20

BV per Common Stock

Total Stockholders Equity / # of Outstanding Common Shares

21

BV per Preferred Share

Preferred Shareholders Equity / # of Outstanding Preferred Stocks