Term
|
Definition
| a measure of a company’s immediate short term liquidity, computed by dividing the sum of cash, short term investments, and net receivables by current liabilities. |
|
|
Term
|
Definition
| a measure of how efficiently a company uses its assets to generate sales, computed by dividing net sales by average assets |
|
|
Term
Change in accounting principle |
|
Definition
| the use of a principle in the current year that is different from the one used in the preceding year. |
|
|
Term
|
Definition
| - includes all changes in stockholders equity during a period except those resulting from investments by stockholders and distributions to stockholders. |
|
|
Term
|
Definition
| a measure used to evaluate a company’s liquidity and short term debt-paying ability, computed by dividing current assets by current liabilities |
|
|
Term
| Debt to total assets ratio |
|
Definition
| - measures the percentage of total assets provided by creditors, computed by dividing total debt by total assets |
|
|
Term
|
Definition
| the disposal of a significant segment of a business |
|
|
Term
|
Definition
| the net income earned on each share of common stock, computed by dividing net income by the number of weighted average common shares outstanding |
|
|
Term
|
Definition
| events and transactions that are unusual in nature and infrequent in occurrence |
|
|
Term
|
Definition
| a technique for evaluating a series of financial statement data over a period of time, to determine the increase that has taken place, expressed either an amount or a percentage |
|
|
Term
|
Definition
| a measure of the liquidity of inventory, computed by dividing cost of goods sold by average inventory. |
|
|
Term
|
Definition
| measures of the short term ability of the nterprise to pay its maturing obligations and to meet unexpected needs for cash. |
|
|
Term
|
Definition
| measures the percentage of earnings distributed in the form of cash dividends, computed by dividing cash dividends by net income. |
|
|
Term
|
Definition
| measures the ratio of the market price of each share of common stock to the earnings per share, computed by dividing the market price of the stock by earnings per share. |
|
|
Term
|
Definition
| measures the percentage of each dollar of sales that results in net income, computed by dividing net income by net sales. |
|
|
Term
|
Definition
| measures of the income or operating success of an enterprise for a given period of time |
|
|
Term
|
Definition
| a measure of income that usually excludes items that a company thinks are unusual or nonrecurring. |
|
|
Term
|
Definition
| indicates the level of full and transparent information provided to suers of the financial statements. |
|
|
Term
|
Definition
| an expresson of the mathematical relationship between one quantity and another. The relationship may be expressed either as a percentage, a rate or a simple proportion |
|
|
Term
|
Definition
| a technique for evaluating financial statements that expresses the relationship between selected financial statement data. |
|
|
Term
|
Definition
| a measure of the liquidity of receivables, computed by dividing net credit sales by average net receivables |
|
|
Term
|
Definition
| an overall measure of profitability, computed by dividing net credit sales by average net receivables. |
|
|
Term
| Return on common stockholders equity |
|
Definition
| measure the dollars of net income earned for each dollar invested by the owners, computed by dividing net income by average common stockholders’ equity. |
|
|
Term
|
Definition
| measures of the ability of the enterprise to survive over a long period of time |
|
|
Term
|
Definition
| - measures a company’s ability to meet interest payments as they come due, computed by dividing income before interest expense and income taxes by interest expense. |
|
|
Term
|
Definition
| borrowing money at a lower rate of interest than can be earned by using the borrowed money. |
|
|
Term
|
Definition
| a technique for evaluating financial statement data that expresses each item within a financial statement as a percent of a base amount |
|
|
