ratios test Flashcards
(36 cards)
cash build
net sales -increase in receivables
current ratio
average current assets/a average current liabilities
quick ratio
avg current assets - avg inventories/ avg current liabilities
nwc to total assets ratio
avg current assets - avg current liabilities / avg total assets
total debt to total assets ratio
avg total debt/ avg total assets
equity multiplier
avg total assets/ avg owners equity
current liabilities to total debt ratio
avg current liabilities/ avg total debt
interest coverage
ebitda/interest
gross profit margin
net sales - cost of goods sold/ net sales
operating profit margin
ebit/ net sales
net profit margin
net income/ net sales
nopat margin
{ ebit (1-tax rate) } / net sales1
sales to total assets ratio
net sales/ avg total assets
operating return on assets
EBIT/AVG Total Assets
return on assets
net income/net sales x net sales/avg total assets
return on equity
net income/ avg owners equity
cash burn
income statement based operating, interest, and tax expenses + increase in inventories - (changes in payables and accrued liabilities) + capital expenditures
working capital
current assets - current liabilities
financial ratios
show the relationship between two or more financial variables
trend analysis
used to examine a ventures performance over time
net profit/ sales x net sales / avge total assets / avg equity
roe model
roe
net income/avg owners equity
roa model
the decomposition of roa into the product of the net profit margin and the sales to total assets ratio
return on total assets
net profit/ ave total assets
