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15 Cards in this Set
- Front
- Back
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Liquidity and Efficiency |
current ratio acid-test ratio accounts receivable turnover inventory turnover total asset turnover |
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Solvency |
debt ratio equity ratio times interest earned debt-to-equity ratio |
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profitability |
profit margin gross margin |
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market prospect |
price-earnings ratio dividend yield |
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current ratio= |
current assets/ current liabilities |
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accounts receivable turnover= |
Net sales/ Avg. Accounts Receivable |
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Inventory Turnover= |
cogs/ Avg. Inventory |
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Acid-test Ratio= |
quick assets/ current liabilities |
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debt ratio |
total liabilities/ total assets measure % of assets contributed by creditors lower the better |
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equity ratio |
total equity/ total assets % of assets contributed by owner higher the less risky |
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times interest earned |
Net Income before Expense/ Interest Expense higher the better |
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Profit Margin= |
Net Income/ net Sales measures a companies ability to earn a net income from sales higher the better |
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Gross Margin= |
Net sales- COGS/Net Sales measure the amount remaingin from sales t cover operating expenses and profit. Higher the better |
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Price-Earnings Ratio= |
Market Price Per Share/ Earnings Per Share measures how much investores are willing to pay for earnings. high expected risk; low PE ratio |
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Dividend Yield= |
Annual Cash dividend per share/ Market price per share based on its fiscal year end market |
