Shared Flashcard Set

Details

Accounting 261
ratios
15
Accounting
Undergraduate 2
12/14/2008

Additional Accounting Flashcards

 


 

Cards

Term
working capital
Definition
current assets-current liabilities
Term
current ratio
Definition
current assets/current liabilities
Term
inventory turnover ratio
Definition
cost of goods sold/average inventory
Term
days in inventory
Definition
365/inventory turnover ratio
Term
receivables turnover ratio
Definition
net credit sales/average net receivables
Term
average collection period
Definition
365/receivables turnover ratio
Term
debt to total assets ratio
Definition
total liabilities/total assets
Term
times interest earned ratio
Definition
net income+interest espense+tax expense/interest expense
Term
free cash flow
Definition
cash provided by operations-capital expenditures-cash dividends
Term
earnings per share
Definition
net income-preferred stock dividends/average common shares outstanding
Term
price-earnings ratio
Definition
stock price per share/earnigs per share
Term
gross profit rate
Definition
gross profit/net sales
Term
profit margin ratio
Definition
net income/net sales
Term
return on assets ratio
Definition
net income/average total assets
Term
asset turnover ratio
Definition
net sales/average total assets
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