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22 Cards in this Set
- Front
- Back
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Working Capital |
measures the excess funds the co. will have available for operations |
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Current ratio |
indicates whether a company has enough ST assets to cover its ST debt |
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Acid-Test Ratio |
measures a co's immediate debt paying ability (no inv. / prepaids) |
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A/R Turnover |
ratio measures how many times a co. converts its receivables into cash year year |
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Avg days to collect A/R |
measures how many days it takes to collect on A/R |
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Inventory turnover |
measures how many times a co.'s inv has been sold and replaced during the year |
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Avg days to sell inventory |
Approx. the number of days the co. could sell inventory without purchasing more |
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Debt to Assets |
ratio measures the percentage of a co.'s assets that are financed by debt |
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Debt to equity ratio |
-indicates the relative proportions of debt to equity on the balance sheet. -Shareholders like alot of debt if the co. can take advantage of (+) financial leverage -Creditors prefer less debt and more equity since equity has a buffer of protection |
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Times interest earned |
a co.'s ability to provide protection for its LT creditors |
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Net margin |
is the percentage remaining of each sales dollar after subtracting other expenses as well as COGS
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Asset turnover ratio |
measures how many sales dollars were generated for each dollar of assets invested |
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Return on assets ( ROI) |
-shows how efficient a co. is at using its assets to generate earnings -add back interest expense to ignore |
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Return on Equity |
Measure the profitability of a co. generates with shareholders investments |
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Gross profit margin |
measures how much of every dollar of revenue is left over paying COGS |
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Operating profit margin |
measures how much of every dollar of revenue is left after paying variable costs |
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Cash turnover |
the amt of times a co. has spent thru its cash during the year |
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working capital turnover |
shows how a co. is using the working capital to generate sales |
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PPE turnover |
how many dollars of sales co. gets for each dollar invested in PPE |
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Earnings yield |
(inverse of PE) shows the % of each dollar invested in the stock that was earned |
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Dividend payout rate |
percentage of earnings to paid to shareholders in dividend |
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Price to book |
used to compare a stock markets value to its BV |
