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23 Cards in this Set

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Current Ratio (Liquidity Ratio)

= Current Assets / Current Liabilities

Quick Ratio (Liquidity Ratio)


= (Current Assets – Inventories) / Current Liabilities

Operating Cash Flow Ratio (Liquidity Ratio)

Cashflow from Operations / Current Liabilities

Accounts Receivable Turnover Ratio (Activity Ratio)

Net Credit Sales / Avg Debtors (# times)

Days Receivable Turnover Ratio (Activity Ratio)

365 / Accounts Receivable Turnover Ratio


(# days)

Inventory Turnover Ratio (Activity Ratio)

COGS / Stock (# times)

Days Inventory Turnover Ratio (Activity Ratio)

365 / Inventory Turnover Ratio (# days)

Total Assets Turnover Ratio (Activity Ratio)


Sales / Total Assets (# times)

Debt Ratio

Total Liabilities / Total Assets

Debt to Equity Ratio (debt ratio)

Total Liabilities / Total Equity

Capitalisation Ratio (debt ratio)


Measures the debt component of a company's capital structure

Long Term Debt / Long Term Debt + Equity

Interest Coverage Ratio (debt ratio)


How easily a company can pay interest expenses on outstanding debt.

EBIT / Interest Expense

Cash Flow to Debt Ratio (debt ratio)


This ratio provides an indication of a company's ability to cover total debt with its yearly cash flow from operations. Read more



Operating Cashflow / Total Debt

Return on Assets (profitability ratio)




Assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time.

Net Income / Total Assets (as %)




Gives an idea as to how efficient management is at using its assets to generate earnings

Return on Equity (profitability ratio)



Measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.


Net Income / Total Equity (as %)

Net Profit Margin (profitability ratio)

Net Income / Net Sales (Revenue) (as %)

Return on Capital Employed (profitability ratio)

EBIT / Capital Employed (as %)




Capital Employed = Avg Debt Liabilities + Avg Shareholder Equity

Equity Multiplier




The ratio of a company’s total assets to its stockholder’s equity. The equity multiplier is a measurement of a company’s financial leverage.





Total Assets / Total Equity (# times)




A high equity multiplier indicates that a larger portion of asset financing is being done through debt. The multiplier is a variation of the debt

Book value per share


Total Equity - Pref Shares / # Shares of Common Stock ($)

Earnings Per Share

Net Income / # Shares Outstanding ($)

Payout Ratio

Dividends Per Share / EPS ($)

Price/Earnings Ratio

Mkt Value Per Share / EPS ($)

Return on Investment

Gain from Investment - Cost of Investment / Cost of Investment