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Details Title: Principles of Fianance Description: 13 Ratios Total Flash Cards: 13 Created: 02/11/2008 16:32:57	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Profit Margin Definition Net income/Sales Term Return on assets Definition Net income/Total assets Term Return on equity Definition Net income/Stockholders' equity Term Receivables turnover Definition Sales (credits)/Accounts receivable Term Average collection period Definition Accounts receivable/Average daily credit sales Term Inventory turnover Definition Sales/Inventory Term Fixed asset turnover Definition Sales/Fixed assets Term Total assest turnover Definition Sales/Total assets Term Current ratio Definition Current assets/Current liabilities Term Quick ratio Definition (Current assets-inventory)/Current liabilities Term Debt to total assets Definition Total debt/Total assets Term Times interest earned Definition Income before interest and taxes/Interest\ note: Income before interest and taxes equals operating profit Term Fixed charge coverage Definition Income before fixed charges and taxes/Fixed charges note: Income before fixed charges and taxes equals operating profit plus Lease payments, which is in a footnote on the income statement.