Shared Flashcard Set

Details

Tools for Analysis
ratios
23
Accounting
Undergraduate 2
12/16/2008

Additional Accounting Flashcards

 


 

Cards

Term
current cash debt coverage ratio
Definition
cash provided by operations/avg. current liabilities
Term
inventory turnover ratio
Definition
GOGs/avg. inventory
Term
days in inventory
Definition
365/inv. turnover ratio
Term
receivables turnover ratio
Definition
net credit sales/avg. net receivables
Term
avg. collection period
Definition
365 days/rec. turnover ratio
Term
cash debt coverage ratio
Definition
cash prvided by operations/avg. total liabilities
Term
cash debt coverage ratio
Definition
cash prvided by operations/avg. total liabilities
Term
times interest earned ratio
Definition
net income + interest expense + tax expense/interest exp.
Term
free cash flow
Definition
cash provided by operations - capital expenditures - cash dividends
Term
earning per share
Definition
net income - preferred stock dividends/avg. common shares outstanding
Term
price-earnings ratio
Definition
stock price per share/earnings per share
Term
gross profit ratio
Definition
gross profit/net sales
Term
profit margin ratio
Definition
net income/net sales
Term
return on assets ratio
Definition
net income/avg. total assets
Term
asset turnover ratio
Definition
net sales/avg. total assets
Term
payout ratio
Definition
cash dividends declared on common stock/net income
Term
return on common tockholders' equity ratio
Definition
net income - preferred stock dividends/avg. common stockholders' equity
Term
liquidity ratios (7)
Definition
working capital, current ratio, current cash debt coverage ratio, days in inventory, receivables turnover ratio, avg. collection period
Term
solvency ratios (4)
Definition
debt to total assets ratio, cash debt coverage ratio, times interest earned ratio, free cash flow
Term
solvency ratios (4)
Definition
debt to total assets ratio, cash debt coverage ratio, times interest earned ratio, free cash flow
Term
profitability ratios
Definition
earnings per share, price-earning ratio, gross profit rate, profit margin ratio, return on assets ratio, asset turnover ratio, payout ratio, return on common stockholders' equity ratio
Term
current ratio def.
Definition
how many current assets for each dollar of current liabilities
Term
current cash debt cov. ratio (meaning)
Definition
cash provided by operating activites involves whole year, t
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