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7 Cards in this Set

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  • Back

Name the 7 sections of the classified balance sheet

Current assets, long-term investments, property plant and equipment, intangible assets, current liabilities, long-term liabilities, and stockholders' equity

What does EPS stand for, and what does it measure?

EPS stands for Earnings Per Share and measures the net income / average # of shares outstanding for the year

What is the net profit margin and give the formula for it

The % of revenue remaining after expenses are deducted




Measured by (total revenue - total expenses) / total revenue

What does solvency mean?

Solvency - the long-term ability to pay interest as it comes due and the ability to repay debts

What is the debt to assets ratio?

Measures the percentage of assets financed by creditors




Total debt (current and long-term liabilities) / total assets

What is liquidity?

The ability to pay obligations due within the year/operating cycle

What is the current ratio?

Measure of short-term ability to pay obligations




Current assets / current liabilities