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21 Cards in this Set
- Front
- Back
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four basic statements
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statement of cash flows, balance sheet, statement of retained earnings, income statement
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balance sheet
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does co. earn enough assets to pay liabilities and still have $ left for dividends and SE?
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income statement
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indicates profit or no profit, can also see trends from year to year and get clues about future earnings
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statement of retained earnings
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policy on dividends affects ability to repay debts, evaluate whether co. favors dividends or retaining earnings for future growth
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statement of cash flows
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indicates to investors and creditors how obtained and spent $
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deferral adjustments
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cash exchanged before
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accrual adjustments
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cash exchanged after services
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net profit margin ratio
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net income/sales revenue
amount of income generated from each dollar of sales indicates how well executives balance sales and expenses PROFITABILITY |
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debt-to-assets
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total liabilities/total assets
indicate the proportion of total assets financed by debt lower is better SOLVENCY |
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asset turnover ratio
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sales revenue/ave total assets
sales revenue per dollar invested in assets, high number means efficient use of assets PROFITABILITY |
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gross profit percentage
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how much profit is made after deducting COGS
PROFITABILITY |
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fixed asset turnover
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how much the company generates in sales for each dollar invested in fixed assets
PROFITABILITY |
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return on equity
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compares the amount of net income to ave SE, reports the net amount earned as a percentage of each dollar contributed by stockholders
PROFITABILITY |
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earnings per share
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amount of earnings generated for each share of common stock
PROFITABILITY |
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quality of income
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relates operating cash flows to net income
PROFITABILITY |
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receivables turnover
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level of accounts receivable relative to sales revenues
LIQUITIDY |
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inventory turnover
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how frequently inventory is bought and sold
LIQUIDITY |
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current ratio
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compares current assets to current liabilities
LIQUIDITY |
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times interest earned
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how many times interest is covered by operating results
SOLVENCY |
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cash coverage ratio
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how many times interest is covered by operatnig results
SOLVENCY |
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capital acquisitions ratio
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compares cash flows from operations to cash paid for property and equipment
SOLVENCY |
