Financial Ratios definitions

# Definition Sets
1 comparisons of a company's financial elements that indicate how well the business is performing 77 sets
2 comparisons of a company's financial elements that indicate how well the business is performing. 39 sets
3 relationships determined from a firm's financial information and used for comparison purposes 24 sets
4 calculations typically used to track a business's liquidity (cash), efficiency, and profitability over time compared to other businesses in its industry 20 sets
5 comparisons using a company's financial data to determine how well a business is performing 16 sets
6 comparisons using a company's financial data to determine how well a business is performing. 9 sets
7 calculations designed to describe an organization's financial health and performance from various perspectives. 8 sets
8 are comparisons using a company's financial data to determine how well a business is performing. 6 sets
9 calculations typically used to track a business's liquidity (cash), efficiency, and profitability over time compared to other businesses in its industry. 5 sets
10 relationships determined from a firm's financial information and used for comparison purposes. 5 sets
11 comparisons of important financial data used to evaluate business performance 4 sets
12 accounting data restated in relative terms in order to help people identify some of the financial strengths and weaknesses of a company. 4 sets
13 calculations designed to simplify evaluation of financial strength and progress 4 sets
14 comparisons of important financial data used to evaluate business performance. 4 sets
15 relationships determined from a firms financial information and used for comparison purposes 4 sets
16 comparisons of financial elements that show how a business is performing 4 sets
17 ways of comparing and investigating the relationships between different pieces of financial information 4 sets
18 calculations typically used to track a business's liquidity, efficiency, and profitability over time compared to other businesses in its industry 3 sets
19 are comparisons using a company's financial data to determine how well a business is performing 3 sets
20 comparisons using a company's financial data to determine how well the business is performing. 3 sets
21 calculation typically used to track a business liquidity efficiency and profitability over time compared to other businesses in its industry 3 sets
22 are comparisons of a company's financial elements that indicate how well the business is performing 2 sets
23 used to track a business' liquidity, efficiency, and profitability over time compared to other businesses in its industry. 2 sets
24 short-term solvency 2 sets
25 measure the degree to which a company is employing financial leverage. 2 sets
26 calculations designed to simplify evaluation of financial strength and progress. 2 sets
27 a comparision using a company's financial data to determine how well a business is performing. 2 sets
28 a common method employed by users, such as analysts to access financial performance and risk 2 sets
29 financial analysis comparisons in which certain financial statement items are divided by one another to reveal their logical interrelationships. 2 sets
30 to evaluate the overall financial condition of a corporation or other organization 2 sets
31 control mechanisms to test the financial strength of the new venture 2 sets
32 used to weigh and evaluate the operating performance of a firm 2 sets
33 calculations typically used to track a business's cash, efficiency, and profitability over time compared to other businesses in its industry 2 sets
34 relationships between financial statement amounts 2 sets
35 inv turnover= cogs/ avg inv ar turn= sales/ avg ar current ratio = ca /cl 2 sets
36 calculations typically used to track a business's liquidity(cash), efficiency, and profitability over time compared to other businesses in its industry 2 sets
37 relationships determined from a firm's financial information and use for comparison purposes 1 set
38 operating expense ratio loan-to-value ratio debt coverage ratio 1 set
39 are compositions of companies financial element that indicate how well the business is performing. 1 set
40 ratios used to assess performance of a company or asset. 1 set
41 compare their performance against their own past history vs. comparable companies in the same industry 1 set
42 also known as 'short-term financial stability ratios' current ratio (working capital ratio)= current assets _____________ current liabilities quick ratio ( acid test ratio)= current assets - (inventories = prepayments) ____________________________________ current liabilities - bank overdraft also known as 'long term financial stability' (solvency ratio) debt ratio = total liabilities ___________ total assets also known as ' leverage ratio or gearing ratio' equity ratio (proprietary ratio) = total owner's equity _________________ total assets 1 set
43 all that's needed is an income statement of a firm and a balance sheet. 1 set
44 yardsticks to measure financial strength and progress 1 set
45 liquidity activity financial leverage measures of profitability 1 set
46 liquidity activity financial leverage measures of profitability compare performance to industry peers changes from year to year and trends over time 1 set
47 depict relationships between items on a firm's financial statements, used to discern whether a firm is meeting its financial objectives and how it stacks up against its industry peers. 1 set
48 depict relationships between items on a firm's financial statements. 1 set
49 restatements of selected income statement and balance sheet data in relative terms. 1 set
50 arithmetic comparison of one financial measure to another, generally used to monitor and control financial performance 1 set
51 short-term solvency/ liquidity long-term solvency or financial leverage ratios asset management or turnover ratios profitability ratios market value ratios 1 set
52 reletionships betweenfin statement amounts, used by investors to make decisions 1 set
53 does the firm have the right mix of debt and equity financing? 1 set
54 working capital = current assets - current liabilities current ratio = current assets/current liabilities 1 set
55 debt to equity, debt to total asset 1 set
56 -short-term solvency or liquidity -long-term solvency measures -asset management or turnover -profitability -market value 1 set
57 net profit margin = net profit / net sales asset turn over = net sales / net assets 1 set
58 measure how effectively a business employs its resources 1 set
59 ways of comparing and investigating the relationships between different pieces of financial information traditional groupings 1. short-term solvency or liquidity 2. long-term solvency 3. asset management or turnover 4. profitability 5. market value 1 set
60 a tool used to examine an organization's financial performance 1 set
61 -study of the relationships between financial statement accounts -purpose is to develop info about the past that can be used to get a handle on the future ("x-rays" of financial statements to look for meaningful relationships between numbers) -historical standards: company's ratios are compared and studied from one year to the next; see if improving or declining -industry standards: involve a comparison of a particular company's ratios to the performance of other companies in the same line of business; see how a company compares to its competitors 1 set
62 finanzwirtschaftliche kennzahlen 1 set
63 control devices involving the division of one measure (of activity or resources) by another 1 set
64 comparisons of a company's financial elements that indicate how well the business is performing relationships btwn financial statement amounts 1 set
65 debt ratio times interest earned ratio fixed-payment coverage ratio (fpcr) 1 set
66 relationships determined from a firms financial information & used for comparison purposes 1 set
67 (finanzwirtschaftliche kennzahlen) 1 set
68 allow you to track progress toward financial goals, & evaluate financial performance over a period of time 1 set
69 calculations typically used to track a business's liquidity (cash) efficiency, and profitability over time compared to other businesses in its industry 1 set
70 calculations typically used to track a business's liquidity (cash), efficiency, and profitability over time compared to other businesses in its 1 set
71 exam how well company is managed exam financial management exam profitability 1 set
72 relationship between one figure appearing in the financial statements with another e.g. net profit in relation to capital employed 1 set
73 show companies ability to meet current obligations or liquidity 1 set
74 comparison of a company's financial elements that indicate how well the business is performing 1 set
75 relationships between financial statement amounts; used by investors and creditors to help them make decisions; not meaningful by itself- needs to be compared to some benchmark 1 set
76 calculations typically used to track a business's liquidity (cash) efficiency and profitability over time compared to other businesses in its industry 1 set
77 comparisons of a company's financial elements that indicate how ell the business is performing 1 set
78 show the relationships between two or more financial variables or between financial variables and time 1 set
79 comparsions of a company's financial elements that indicate how well the business is performing 1 set
80 tools to check the financial position of the business; include: liquidity, effiency, profitablity, and other measures 1 set
81 typically used to track business liquidity, efficiency, profitability overtime compared with other businesses in the industry 1 set
82 indicate the extent to which borrowed funds are used to finance assets, as well as the ability of a firm to meet its debt payment obligations 1 set
83 measure long term ability to meet financial obligations; total debt, debt-equity, times interest earned 1 set
84 one accounting # divided by another accounting # from financial statements 1 set
85 used to evaluate performance of firm by comparing performance record against similar firms in industry 1 set
86 used to weigh and evaluate the operating performance of a firm--used to compare performance record against similar forms in the industry--analyzing ratios and numerical calculations--such data is provided by various organizations 1 set
87 tells you what %age of your net worth is made up of financial assets . financial assets/net worth. 1 set
88 an arithmetic comparison of one financial measure to another, generally used to monitor and control financial performance. 1 set
89 - a way of comparing and investigating the relationships between different pieces of financial information 1 set
90 examining a firm's performance over time and comparing against comparable competitors are two ways to use ________ _______ 1 set
91 current ratio: current assets / current liabilities interest cover: ebit/interest paid debt to equity %: total shareholder funds/total assets net tangible assets per share: total a- total l/ no. of ordinary shares 1 set
92 calculations typically used to trade a business cash,efficnecy, and profitablity over time compared to other business in its industry 1 set
93 relationships between financial statements amounts 1 set
94 use for possible financial problems compare ratios to determine if acceptable loan risk. lenders use ratios to determine if acceptable loan risk. managers use ratios to identify problems that need to be corrected. 1 set
95 calculations typically used to track a businesses liquidity, effeceincy, and profitability over time compared to other businesses in its industry 1 set
96 liquidity: a companies ability to pay short term debt (current assets/current liabilities) leverage: shows funds supplied by creditors and shareholders (debt/equity) profitability: show ability to generate financial return on sales (net income/equity) 1 set
97 a broad term denoting ratios computed from financial statements and used to characterize and analyze a firm financial results, condition, and/ or prospects. 1 set
98 liquidity, leverage, profitability ratios 1 set
99 compare financial statement numbers to help us understand the economic meanings 1 set