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25 terms

Erik's Accouting Ratios

STUDY
PLAY
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