Accounting Ratios 1st & 2nd Semester
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16 terms
Terms | Definitions |
|---|---|
 Profit Margin | Net Income/Net Sales |
| Current Ratio | Current Assets/Current Liabilities |
| Gross Margin Ratio | (Net Sales - Cost of Goods Sold)/Net Sales |
| Acid-Test Ratio (Quick Ratio) | (Cash & Cash Equivalents + Short Term Investments + Current Receivables)/Current Liabilities |
| Inventory Turnover | COGS/Average Inventory |
| Days' sales in inventory | (Ending inventory/COGS) X 365 |
| Return on Assets | Net Income/Average Total Assets |
| Debt Ratio | Total Liabilities/Total Assets |
| Accounts Receivable Turnover | Net Sales/Average Accounts Receivable |
| Total Asset Turnover | Net Sales/Average Total Assets |
| Debt to Equity Ratio | Total Liabilities/Total Equity |
| Earnings per Share | (Net Income - Preferred dividends)/Weighted-average common shares outstanding |
| Price-Earnings Ratio | Market Value per share/Earnings per share |
| Dividend Yield | Annual Cash Dividends per share/Market Value per share |
| Book Value per Preferred Share | Stockholder's equity applicable to preferred shares/number of preferred shares outstanding |
| Book Value per Common Share | Stockholder's equity applicable to common shares/number of common shares outstanding |
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