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12 Cards in this Set

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  • Back
What does common equity include?
common stock
additional paid in capital
retained earnings
treasury stock
Fixed Asset Turnover(FAT)
how many dolars of sales are generated by each dollor worth of fixed assets


Sales/Net Fixed Assets
Return on Common Equity(ROE)
what is the percentage return owners are getting from there investment


net income/common equity
Quick Ratio
(ACID Test)
-how many times the existing current assets(not including inventories) would pay off the existing current liabilities


CA-Inventory/CL
Profit Margin
how much of each dollar of sales ends up as profit


net income/sales
Total Assets Turnover
how many dollars in sales are generatedby each dollar worth of total assets


sales/TA
Liquidity Ratios
-provide a rough measures for how adequate the current assets(CA) are, given the amount of current liabilities
Debt Ratio
what percentage of the money(funding)has been provided by creditors
Debt to Worth
how well is the creditors'(lenders) debt covered by the owners equity


TL/net worth
Times Interest Earned
how far operating income can fall before the company can not pay interest expense


EBIT/interest charges



Current Ratios
-how many times the existing current assets(CA)would pay off the exhisting current liabilities(CL)


CA/CL
Days Payable
the average length of time it takes a firm to pay its accounts payable


AP/(costs of goods sold/360)
or
AP/(Sales/360)