Erik's Accouting Ratios

25 terms by erikrh

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Current Ratio

current assets/current liabilities

quick (acid-test) ratio

Selected current assets(cash, mktble securities, a/r)/C. liabilities
(current assets-inventory)/current liabilities

percentage decrease.increase in CA/CL

change in total current assets/base year amount of current assets

days sales in A/R (Ave collection period)

365/A/R Turnover

Accounts receivable turnover

sales revenue/[(beg A/R +end A/R)/2]

inventory turnover

COGS/[beg inv+end inv)/2]

Days sales in inventory

365/inventory turnover

Accounts payable turnover

inventory purchases/[beg a/p+end a/p)/2]

days purchases in A/P

365/A/P turnover

debt ratio

total liabilities/total assets

debt to equity ratio

total liabilities/total equity

percentage increase/decrease in total assets

change in total assets/base year of total assets

times interest earned

income before interest expense & income taxes/interest expense(NI+int exp+income tax)/int expense

asset turnover (sales to assets ratio)

sales revenues/total assets

ROE

Net income/total equity

DuPont Framework

ROE=(NI/Sales Rev)(Sales Rev/total assets)(total assets/total equity)

EPS

Net income/# of shares outstanding

EPS

net income-preferred dividends/weighted ave # of shares outstanding

Dividend payout

Dividends per share/EPS

Dividend yield

Dividends per share/share price paid

ROI (shareholder's return on investment)

total dividends received +- increase/decrease in stock value/share price paid

P/E Ratio

market price per share/EPS

EPS To market price per share (ROI)

EPS/market price per share

book value

BV=Assets-Liabilities

BV Per share

BV/Shares

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