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12 Cards in this Set
- Front
- Back
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What does common equity include?
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common stock
additional paid in capital retained earnings treasury stock |
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Fixed Asset Turnover(FAT)
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how many dolars of sales are generated by each dollor worth of fixed assets
Sales/Net Fixed Assets |
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Return on Common Equity(ROE)
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what is the percentage return owners are getting from there investment
net income/common equity |
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Quick Ratio
(ACID Test) |
-how many times the existing current assets(not including inventories) would pay off the existing current liabilities
CA-Inventory/CL |
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Profit Margin
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how much of each dollar of sales ends up as profit
net income/sales |
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Total Assets Turnover
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how many dollars in sales are generatedby each dollar worth of total assets
sales/TA |
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Liquidity Ratios
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-provide a rough measures for how adequate the current assets(CA) are, given the amount of current liabilities
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Debt Ratio
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what percentage of the money(funding)has been provided by creditors
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Debt to Worth
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how well is the creditors'(lenders) debt covered by the owners equity
TL/net worth |
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Times Interest Earned
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how far operating income can fall before the company can not pay interest expense
EBIT/interest charges |
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Current Ratios
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-how many times the existing current assets(CA)would pay off the exhisting current liabilities(CL)
CA/CL |
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Days Payable
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the average length of time it takes a firm to pay its accounts payable
AP/(costs of goods sold/360) or AP/(Sales/360) |
