Term
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Definition
(Net Income / Revenues) x 100
-How much profit from each dollar of revenue.
-Higher ratio means better performance. |
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Term
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Definition
(Net Sales Revenue - Cost of Goods Sold / Net Sales Revenue) x 100
-The percentage of profit earned on each dollar of sales, after considering the cost of goods sold.
-A higher ratio means that greater profit is available to cover expenses |
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Term
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Definition
Net Revenue / Average Net Fixed Assets
-Indicates dollars of revenue generated for each dollar invested in fixed assets (long live tangible assets).
-A higher ratio implies greater efficiency. |
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Term
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Definition
(Net Income - Preferred Dividends / Average Common Stockholders' Equity) x 100
-Amount of Net Income earned for each dollar of common stockholders' equity.
-Higher ratio means greater returns for stockholders'.
-Can be compared across companies. |
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Term
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Definition
Net Income - Preferred Dividends / Average Number Of Common Shares Outstanding
-Reports how much profit is earned for each share of common stock outstanding.
-Higher ratio means greater profitability
-Can not be compared across companies. |
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Term
| Price/Earnings Ratio (P/E) |
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Definition
Stock Price / EPS
-How many times more than the current years earnings investors are willing to pay for a company's common stock.
-Higher number means investors see future improvements. |
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Term
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Definition
Net Sales Revenue / Average Net Receivables
-The number of times receivable's turnover during a period.
-A higher ratio means better turnover. |
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Term
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Definition
365 / Receivable's Turnover Ratio
-Average number of days from sale on account to collected.
-A higher numbers means a longer time to collect. |
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Term
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Definition
Cost of Goods Sold / Average Inventory
-The number of times inventory turns over during a period.
-A higher ratio means faster turnover |
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Term
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Definition
365 / Inventory Turnover Ratio
-Days required to sell inventory
-A higher number means a longer time to sell. |
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Term
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Definition
Current Assets / Current Liabilities
-Whether current assets are sufficient to pay liabilities.
-A higher ratio means better ability to pay. |
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Term
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Definition
Total Liabilities / Total Assets
-percent of assets financed by creditors.
-Higher ratio means greater financing risk. |
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Term
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Definition
Interest Expense + Income Tax Expense + Net Income / Interest Expense
-How much income is generated (before the cost of financing and taxes) for each dollar of interest expense.
-Higher number means a better coverage |
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