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17 Cards in this Set
- Front
- Back
A broad measure of profitability
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Gross margin percentage
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tends to have an effect on the market price per share, as reflected in the price-earnings ratio
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Earnings per share (of common stock)
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An index of whether a stock is relatively cheap of relatively expensive in relation to current earnings
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Price-earnings ratio
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An index showing whether a company pays out most of its earnings in dividends or reinvests the earnings internally
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Dividend payout ratio
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Shows the return in terms of cash dividends being provided by a stock
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Dividend yield ratio
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Measure of how well assets have been employed by management
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Return on total assets
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When compared to the return on total assets, measures the extent to which financial leverage is working for or against common stockholders
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Return on common stockholders' equity
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Measures the amount that would be distributed to common stockholders if all assets were sold at their balance sheet carrying amounts and if all creditors were paid off
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Book value per share
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Measures the company's ability to repay current liabilities using only current assets
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working Capital
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Test of short-term debt paying ability
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Current Ratio
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Test of short-term debt-paying ability without having to rely on inventory
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Acid-test (quick) ratio
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A rough measure of how many times a company's accounts receivable have been turned into cash during the year
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Accounts receivable turnover
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Measure of the average number of days taken to collect an account receivable
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Average collection period (age of receivables)
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Measure of how many times a company's inventory has been sold during the year
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Inventory turnover ratio
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Measure of the average number of days taken to sell the inventory one time
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Average sale period (turnover in days)
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Measure of the company's ability to make interest payments
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Times interest earned
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Measure of the amount of assets being provided by creditors for each dollar of assets being provided by the stockholders
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Debt-to-equality ratio
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