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25 Cards in this Set
- Front
- Back
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Benchmark
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A standard used to compare financial performance.
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Comparative financial statements
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Financial statements that provide information for multiple fiscal periods.
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Current ratio
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A ratio that measures the relationship of current assets to current liabilities.
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Debt ratio
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Total liabilities divided by total assets.
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Dividend yield
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The relationship between dividends per share and market price per share.
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Earnings per share
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Net income after federal income tax divided by the number of outstanding shares of stock.
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Gross margin
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Gross profit as a percent of net sales.
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Gross profit margin
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See gross margin.
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Horizontal analysis
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A comparison of one item on a financial statement with the same item on a previous period’s financial statement.
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Liquid assets
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See quick assets.
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Liquidity ratio
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A ratio that measures the ability of a business to pay its current financial obligations.
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Market ratio
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A ratio that measures a corporation’s financial performance in relation to the market value of its stock.
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Operating expense ratio
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Total operating expenses as a percent of net sales.
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Operating margin
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Income from operations as a percent of net sales.
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Payout ratio
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The amount of dividends divided by net income.
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Price-earnings ratio
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The relationship between the market value per share and earnings per share of a stock
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Profit margin
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Net income after federal income tax as a percent of net sales.
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Profitability ratio
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A ratio that measures the ability of a business to generate income.
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Quick assets
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Cash and other current assets that can be quickly converted into cash.
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Quick ratio
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A ratio that measures the relationship of quick assets to current liabilities.
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Rate of return on sales
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See operating margin.
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Rollover
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The movement of funds from one qualified retirement plan to another.
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Solvency ratio
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A ratio that measures the ability of a business to pay its long-term liabilities.
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Trend analysis
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An analysis of changes over time.
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Working capital
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The amount of total current assets less total current liabilities.
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