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10 Cards in this Set
- Front
- Back
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Current Ratio |
Current Assets / Current Liabilities Measures: Short-term debt-paying ability |
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Current Cash Debt Ratio |
Net Cash provided by Operating activities/ Average current liabilities Measures: Company's ability to pay of current liabilities in a given year from it's operations |
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Accounts Receivable Turnover Ratio |
Net Sales / Average trade receivables (net) Measures: liquidity of receivables |
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Profit Margin on Sales Ratio |
Net income / Net sales Measures: net income generated by each dollar of sales |
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Return on Assets Ratio |
Net income / average total assets Measures: overall profitability of assets |
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Return on Common Stock Equity Ratio |
(net income - preferred dividends) / (common stock - Preferred stock) Measures: Profitability of owners investment |
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Gross Profit Percentage Ratio |
(Net sales- COGS) / Net Sales Measures: the amount of profit coming in vs the cost |
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Times Interest Earned Ratio |
(Income before income taxes plus interest) / Interest Expense Measures: ability to meet interest payments |
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Debt to Asset Ratio |
total liabilities / total assets Measures: the total assets provided by creditors |
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Book Value Per Share Ratio |
common stockholders' equity / outstanding shares Measures: amount of cash each share would receive if the company were liquidated at the amounts reported on the balance sheet |
