Term
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Definition
| Current Assets - Current Liabilities |
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Term
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Definition
| Current Assets/Current Liabilities |
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Term
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Definition
| (Cash + Cash Eq. + A/R)/ Current Liabilities |
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Term
| Accounts Receivable Turnover |
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Definition
| Net Credit Sales/Avg A/R Balance |
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Term
| Average Collection Period |
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Definition
| 365 days/Inventory Turnover |
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Term
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Definition
| Total Liabilites/Total Assets |
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Term
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Definition
| Total Liabilities/ Total Stockholder's Eq |
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Term
| Times-Interest-Earned Ratio |
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Definition
| Earnings Before Interest Exp and Income Taxes/ Interest Expense |
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Term
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Definition
| Gross Margins/Net Sales Rev |
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Term
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Definition
| (Net Income +(Interest Expense x (1-tax rate)))/Avg Total Assets |
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Term
| Return on Common Stockholder's Equity |
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Definition
| (Net Income - Preferred Dividends)/Avg Common Stockholder's Equity |
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Term
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Definition
| (Net Income - Preferred Dividends)/ Avg Number of shares outstanding |
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Term
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Definition
| Market price per share/ Earnings Per share |
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Term
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Definition
| Dividends per share/ Earnings per share |
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Term
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Definition
- measures ability to pay current liabilities, collect A/R, ability to sell inventory
-Working Capital, Current Ratio, Acid Test, A/R Turnover, Avg Collection Pd, Inventory Turnover, Avg Days to Sell Inventory |
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Term
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Definition
- measures ability to meet long-term debt obligations
- debt ratio, debt-to-equity, times-interest-earned |
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Term
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Definition
-measure profitability
- gross margin, return on assets, return on common stockholder's equity |
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Term
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Definition
- measures investment potential
- earnings per share, price/earnings, divident payout |
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Term
| ROI (return on investment) |
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Definition
operating income/avg operating assets
OR
(operating income/sales rev) x (sales rev/average operating assets) |
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Term
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Definition
| Operating Income - (assets x minimum required rate of return) |
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Term
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Definition
| PVA = Net Initial investment/annual cash flow |
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Term
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Definition
Net initial investment/annual cash flow
(same as IRR!) |
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Term
| Accounting Rate of Return |
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Definition
(Project Rev-Project Operating Exp)/(Initial investment - salvage of old equipment)
- includes depreciation! |
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