Term

Definition
(New value  old value) ÷ old value 


Term
Asset to equity ratio (leverage) 

Definition


Term
Asset turnover (efficiency) 

Definition


Term
Return on sales ratio (profitability) 

Definition


Term

Definition
net income ÷ total equity Also = leverage x efficiency x profitability 


Term

Definition
net income ÷ assets Determines how profitable company is before leverage 


Term

Definition
current assets  current liabilities measure of liquidity 


Term

Definition
current assets ÷ current liabilities measure of liquidity 


Term

Definition
cash + accounts recievable + marketable securities ÷ current liabilities measure of liquidity 


Term
number of days in inventory 

Definition
365 ÷ (cost of sales:inventory) Shows the average number of days of items in inventory. 


Term
number of days in receivables 

Definition
365 ÷ (accounts receivable turnover) Reflects the number of days that receivables are outstanding. Target average or lower. 


Term
cash flow to net income ratio 

Definition
net operating cash flow ÷ net income Financial ratio used to analyze the cash flow relationship between cash from operations and reported net income; computed as cash from operations divided by net income 


Term

Definition
operating cash flow ÷ longterm liabilities should be close to = 1 or higher 


Term

Definition
net income + depreciation  (changes in working capital)  capital expenditures Look what RED COMPANY says about this ratio becasue i think they simplified the ratio for your class 


Term

Definition


Term

Definition
price per share of stock in market ÷ annual earnings per share 

