Managerial Accounting

Front 1

Gross Margin Percentage

Back 1

Front 2

Gross Margin

Back 2

Front 3

Earnings per Share

Back 3

Note: net income for common stockholders = net income – dividends paid to preferred stock holders.

Front 4

Price-Earnings Ratio

Back 4

Note: With a high P – E ratio, investors are willing to pay a premium for the company’s stock (they expect the company to grow)

Front 5

Dividend Yield Ratio

Back 5

Note: Measures the rate of return (in the form of cash dividends only) that would be earned by an investor who buys common stock at the current market price.

Front 6

Return on Total Assets

Back 6

Note: interest expenses are added back to the net income to show what earnings would have been if the company had not debt. (this allows comparison of companies with and without debt)
-Placed on an after-tax basis by multiplying it by the factor (1- tax rate)

Front 7

Return on Equity

Back 7

Net Income

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Average Stockholder's Equity

Front 8

Book Value per Share

Back 8

Front 9

Working Capital

Back 9

Front 10

Current Ratio

Back 10

Front 11

Acid- Test (quick) Ratio

Back 11

Front 12

Accounts Receivable Turnover

Back 12

Note: measures how quickly sales are converted into cash.

Front 13

Average Collection Period

Back 13

Note: whether this measurement is or good bad depends on the credit terms your firm is offering its customers. If credit terms are 30 days, then 35 avg C.P. would usually be viewed as good.

Front 14

Inventory Turnover

Back 14

Note: measures how many times a company’s inventory has been sold and replaced during the year.

Front 15

Average Sale Period

Back 15

Front 16

Times Interest Earned Ratio

Back 16

Earnings before Tax and Interest Expense

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Interest Expense+

Front 17

Debt-to-Equity Ratio

Back 17

Note: Creditors like to see less debt and more equity because equity represents the excess of total assets over total liabilities and means a better buffer for them.

Front 18

Operating Cycle

Back 18

Average Sale Period

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Average collection period

Front 19

Total Asset Turnover

Back 19

Sales/Average total Assets

Front 20

Equity Multiplier

Back 20

Average total Assets/Average stockholder's equity

Front 21

Net Profit Margin Percentage

Back 21

Net income/Sales

Front 22

Dividend Payout Ratio

Back 22

Dividends per Share/Earnings per share