Financial Accounting Ratios

9 terms by jshe 

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Current Ratio

Current assets
/
Current liabilities

Acid-Test Ratio

(Cash + Short-term investments + Net current receivables)
/
Current liabilities

Inventory Turnover

COGS
/
Average inventory

A/R Turnover

Net credit sales
/
Average net A/R

Debt Ratio

Total liabilities
/
Total assets

ROS

Net income
/
Net sales

ROA

(Net income + Interest expense * (1 - tax rate))
/
Average total assets

ROE

(Net income - Preferred dividends)
/
Average Common SE

EPS

(Net income - Preferred dividends)
/
Average number of shares of common stock outstanding

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