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17 Cards in this Set

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