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24 Cards in this Set
- Front
- Back
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Assets - Liabilities = |
Net Worth |
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Net worth + Liabilities = |
Assets
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What is a balance sheet used for |
to calculate capitalization and liquidity ratios |
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Operating Income - Interest Payments = |
Taxable Income
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What money is used to pay dividends |
Dividends are paid with net income (after taxes are taken out) |
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Earning available to common / Number of shares outstanding = |
EPS (earnings per share) |
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Long term debt + equity (capital stock + Capital in excess of par + retained earnings) = |
Market Capitalization |
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Total Long term debt / Total shareholders equity = |
Debt to equity ratio |
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Long term Liabilities / Total capitalization = |
Bond Ratio |
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Common shareholders equity / Capitalization = |
Common stock ratio |
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Preferred Stock / Capitalization =
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Preferred Stock Ratio |
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Current Assets / Current Liabilities = |
Current Ratio |
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Current Assets - Inventory = |
Quick Assets |
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Quick assets / Current Liabilities = |
Acid test ratio |
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Cash and equivalants / Current Liabilities = |
Cash asset ratio |
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(Assets - Liabilities - Intangibles - Par value of preffered stock) / Shares of common stock outstanding = |
Book Value per share
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EBIT / (Annual Interest + Principal Payments) = |
Debt Service Ratio |
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Operating Income - Taxes - Interest - Preferred dividends paid = |
Earnings available to common |
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Annual Cash Dividends / Number of common share outstanding = |
Dividends per share |
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Annual Dividends per common share / Earnings per share = |
Dividend Payout Ratio |
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Current Price of common share / Earnings per share = |
Price to Earnings Ratio (PE ratio) |
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This document is used to determine efficiency and profitability |
Income Statement |
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This document is used to compute market capilization and liquidity ratios |
Blanace sheet |
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Current Assets - Current Liabilities = |
Working Capital |
