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13 Cards in this Set
- Front
- Back
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Working Capital |
current assets - current liabilities
(ability to meet short term obligations)
*L* |
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Current Ratio |
current assets / current liabilities
(short term debt-paying ability)
*L* |
|
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Quick Ratio |
(cash + s.t. investments + receivables) / current liabilities
(immediate short-term liquidity)
*L* |
|
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Inventory Turnover |
cost of sales / average inventory
(liquidity of inventory)
*L* |
|
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Avg. days in inventory |
365 / inventory turnover
(average days taken to sell inventory)
*L* |
|
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Gross Profit Percentage |
(net sales - cost of sales) / net sales
(profitability of each sales dollar above cost of sales)
*P* |
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Net Profit Margin |
net income / net sales
(net income generated by each dollar of sales)
*P* |
|
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Asset Turnover |
net sales / average total assets
(how efficiently assets are used to generate sales)
*P* |
|
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Return on Assets |
net income / average total assets
(overall profitability of assets)
*P* |
|
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Return on S/E |
net income / average stockholders' equity
(profitability of owners' investments)
*P* |
|
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Debt to Assets |
total liabilities / total assets
(proportion of assets financed with debt)
*S* |
|
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Debt to Equity |
total liabilities / total stockholders equity
(proportion of liabilities relative to equity)
*S* |
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Times Interest Earned |
(net income + income tax exp. + interest exp.) / interest exp.
(ability to meet interest payments)
*S* |
