Term
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Definition
current assets
current liabilities |
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Term
| what does the current ratio measure? |
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Definition
| compares a firms current (liquid) assets to its current (short-term) liabilities |
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Term
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Definition
total liabilities
total assets |
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Term
| what does the debt ratio measure? |
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Definition
| the proportion of the firms assets that are financed by borrowing or debt |
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Term
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Definition
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Term
| what does the total asset turnover measure? |
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Definition
| the amout of sales generated per dollar invested in the firms assets |
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Term
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Definition
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Term
| what does the net profit margin measure? |
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Definition
| how much income is generated from each dollar of sales after adjusting for all expenses |
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Term
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Definition
net income
# c/s shares outstanding |
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Term
| what does the earnings per share measure? |
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Definition
how much each share contributes to the net income
The portion of a company's profit allocated to each outstanding share of common stock |
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Term
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Definition
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Term
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Definition
| how much investors are currently willing to pay for $1 of reported earnings |
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Term
| average collection period |
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Definition
accounts recievable
sales
365
measures the amount of days to collect an accounts recievable |
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Term
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Definition
(cash + short term securities + net A/R)
current liabilities
masures overall liquidity excluding inventory & other current assets that may not be liquid
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Term
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Definition
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Term
| inventory conversion period |
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Definition
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Term
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Definition
ebit
interest expense
measures the ability to service its debt or repay the interest on debt |
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Term
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Definition
EBIT
total assets
measures operating profitabiity (use of assets, controlling expenses) |
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Term
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Definition
net income
total equity
measures the accounting return on the common stockholders investment |
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Term
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Definition
market price per share
book value per share
relationship between the market value and accumlated investment in the firms equity |
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