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Details

Financial Accounting Ratios
Ratios
19
Accounting
Undergraduate 2
12/12/2008

Additional Accounting Flashcards

 


 

Cards

Term
Net Profit Margin Ratio
Definition
Net Income/Net Sales Revenue
Term
Gross Profit Percentage
Definition
Net Sales Revenue - CoGS/Net Sales Revenue
Term
Asset Turnover Ratio
Definition
Net Sales Revenue/ Average Net Fixed Assets
Term
Return on Equity (ROE)
Definition
Net Income/Avg Stockholder's Equity
Term
Earnings Per Share (EPS)
Definition
Net Income/Avg Number of Common Shares
Term
Quality of Income Ratio
Definition
Net Cash from Operations/Net Income
Term
Price Earnings Ratio
Definition
Stock Price/EPS
Term
Receivables Turnover Ratio
Definition
Net Sales Revenue/Avg Net Receivables
Term
Days to Collect
Definition
365/Receivables Turnover Ratio
Term
Inventory Turnover Ratio
Definition
CoGS/Avg Inventory
Term
Days to Sell
Definition
365/Inventory Turnover Ratio
Term
Current Ratio
Definition
Current Assets/Current Liabilities
Term
Debt-to-Assets Ratio
Definition
Total Liabilities/Total Assets
Term
Times Interest Earned
Definition
Net Income + Interest Expense + Income Tax Expense/Interest Expense
Term
Cash Coverage
Definition
Net Cash from Operations + Interest Paid + Income Taxes Paid/Interest Paid
Term
Capital Acquisitions Ratio
Definition
Net Cash from Operations/Cash Paid for PPE
Term
Profitability Ratios
Definition
How well a business is performing in terms of profit.
Term
Liquidity Ratios
Definition
A company's ability to pay current obligations
Term
Solvency Ratios
Definition
Measures to assess a company's ability to meet its long term obligations and avoid bankruptcy.
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