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18 Cards in this Set
- Front
- Back
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Acid test ratio |
Measures the availability of liquid current assets to pay current liabilities |
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Asset turnover |
Measures the sales per dollar of assets invested |
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Avg collection period |
Approximate number of days the avg AR balance is outstanding |
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Current ratio |
Measures the availability of current assets to pay current liabilities |
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Debt to equity ratio |
Measures a company’s solvency risk |
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Extraordinary item |
An event that is unusual in nature and infrequent in occurence |
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Gross profit ratio |
Measures the amount by which the sale price of inventory exceeds its COGS |
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Growth stocks |
Stocks that have high expectations of future earnings growth and therefore usually trade at higher PE ratios |
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Horizontal analysis |
Analyzed trends in financial statement data for a single company over time |
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Inventory turnover ratio |
The number of times, on avg, a company sells its entire inventory during a reporting period |
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Liquidity |
Refers to a company’s ability to pay its current liabilities |
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Price earnings (PE) ratio |
Compares a company’s share price with its earnings per share |
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Profit margin |
Indicates the income per dollar of sales |
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Profitability ratios |
Measure the earnings or operating effectiveness of a company |
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Receivables turnover ratio |
Measures how many times, on avg, a company collects its receivables during the year |
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Times interest earned ratio |
Compare interest payments with a company’s income available to pay those charges |
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Return on assets |
Measures the income the company earns on each dollar invested in assets |
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Return on equity |
Measures the income earned for each dollar in SE |
