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 debtpaying 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 

