Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
|
total debt ratio = equity multiplier ratio = |
(tot ass-tot equity) /tot ass tot ass/tot equity |
|
|
Long term solvency ratios |
Total debt ratio and equity multiplier ratio |
|
|
Three efficiency ratios |
Receivable turnover , day sales in receivables , total assets turnover . |
|
|
receivable turnover ratio |
sales/ trade receivables |
|
|
Day sales in receivables ratio |
365/ receivables turnover |
|
|
Total asset turnover ratio |
Sales/ Total Assets |
|
|
Three profitability ratios
|
Profit margin, return on assets, return on equity |
|
|
profit margin = |
net income / sales |
|
|
return on assets |
Net income/ total assets |
|
|
return on equity |
net inc/ total equity |
|
|
earnings per share |
net income/shares outstanding |
|
|
prince earnings ratio |
price per share/EPS |
|
|
market to book ratio |
market value per share/book value per share |
|
|
Assets
|
represent investments made by company |
|
|
Assets should be equal to |
liabilities + shareholder equity |
|
|
Net working capital should be equal to |
Cur liabilities + non current liabilities + shareholder equity . |
