Term
CURRENT RATIO
* Liquidity Ratio |
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Definition
Current Assets
Current Liabilities
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Term
Quick Ratio
* Liquidity Ratio |
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Definition
Current Assets-Inventory
Current liabilities |
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Term
Inventory Turnover
* Asset Management |
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Definition
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Term
Days Sales Outstanding (DSO)
* Asset Management |
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Definition
Receivables
Annual Sales/365
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Term
Fixed Asset Turnover
*Asset Management |
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Definition
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Term
Total Asset Turnover
*Asset Management |
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Definition
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Term
Debt Ratio
Debt Management Ratio |
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Definition
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Term
Times Interest Earned (TIE)
"Can a firm afford to issue more debt based on information from its last income statement?"
high- yes
Debt Management Ratio |
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Definition
Ebit (earnings before income tax)
Interest
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Term
Profit Margin
* Profitability Ratio |
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Definition
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Term
ROA
* Profitability Ratio |
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Definition
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Term
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Definition
Net Income-Dividends
Common Equity
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Term
Earnings Per Share (EPS)
* Market Value Ratio |
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Definition
Income
Shares Outstanding
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Term
Book Value Per Share
* Market Value Ratio |
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Definition
Common Equity
Shares Outstanding
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Term
Price/Earnings Ratio
* Market Value Ratio |
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Definition
Market Price per Share
EPS
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Term
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Definition
PROFIT MARGIN x ASSET TURNOVER x EQUITY MULTIPLIER
Net Income/Sales X Sales/Assets X Assets/Equity |
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