#### Study sets matching "accounting ratios"

#### Study sets matching "accounting ratios"

Current Ratio

Quick ("Acid Test") Ratio

Interest Coverage (Times Interest Earn…

Return on Assets (ROA)

Current Assets/Current Liabilities... Firm's ability to meet it…

(Cash + Marketable Securities + Accounts Receivable)/Current…

EBIT/Interest Expense... Indicates the relative protection that…

Net Income/Average Total Assets... Firm's performance in using…

Current Ratio

Current Assets/Current Liabilities... Firm's ability to meet it…

Quick ("Acid Test") Ratio

(Cash + Marketable Securities + Accounts Receivable)/Current…

Return on Capital Employed (ROCE)

Gross Profit Margin (GP to Sales)

Mark Up

Expenses/Overheads to Sales

Profit for the Year or Profit from Operations/Capital x 100 (…

Gross Profit/Sales x 100 (Profitability)

Gross Profit/Cost of Sales x 100 (Profitability)

Expenses/Sales x 100 (Profitability)

Return on Capital Employed (ROCE)

Profit for the Year or Profit from Operations/Capital x 100 (…

Gross Profit Margin (GP to Sales)

Gross Profit/Sales x 100 (Profitability)

Return on Capital Employed (ROCE)

Gross Profit Margin (GP to Sales Ratio)

Mark Up

Expenses/Overheads to Sales

Shows how good the business is at using the money invested in…

Shows the % of sales that is retained as Gross Profit

Shows the % added to the cost to arrive at the selling price

Shows the % of turnover/sales used to pay expenses/overheads

Return on Capital Employed (ROCE)

Shows how good the business is at using the money invested in…

Gross Profit Margin (GP to Sales Ratio)

Shows the % of sales that is retained as Gross Profit

current ratio

quick or acid test

return on equity

return on capital employed

the higher this ratio, the more able a company is to pay back…

an indicator of whether a firm has enough short term assets t…

compares net income to average shareholder equity; measures h…

possibly better than return on equity because it shows how we…

current ratio

the higher this ratio, the more able a company is to pay back…

quick or acid test

an indicator of whether a firm has enough short term assets t…

Current Ratio

Acid-test ratio

Accounts receivable turnover

Inventory turnover

Current assets / current liabilities

Cash+ short-term investments + current receivables /current l…

Net Sales / Average accounts receivable, net

COGS / Average inventory

Current Ratio

Current assets / current liabilities

Acid-test ratio

Cash+ short-term investments + current receivables /current l…

Current Ratio (Up or down?)

Current Ratio

Gross Margin Ratio (Up or down?)

Gross Margin Ratio

^ 2:1 Ratio is good, Used with the Balance Sheet

Explains what a comfortable amount of working capital is, the…

^ is better shows direct profit from sales, Used with the Inc…

It is the excess of Sales of COGS, it generally shows profita…

Current Ratio (Up or down?)

^ 2:1 Ratio is good, Used with the Balance Sheet

Current Ratio

Explains what a comfortable amount of working capital is, the…

Current Ratio

Quick Ratio

Accts R Turnover

Days Sales in Accts R

Current Assets / Current Liabilities

(Cash + Short-Term Investments + Accts R) / Current Liabilities

Net Credit Sales / Avg Net Accts R

365 / Accts R Turnover

Current Ratio

Current Assets / Current Liabilities

Quick Ratio

(Cash + Short-Term Investments + Accts R) / Current Liabilities

Current Ratio

Quick Ratio

Net Working Capital Ratio

Profit Margin

Current Assets / Current Liabilities

(Cash + Short Term Securities + Accounts Receivable) / Curren…

(Current Assets - Current Liabilities) / Total Assets

Net Income / Revenue

Current Ratio

Current Assets / Current Liabilities

Quick Ratio

(Cash + Short Term Securities + Accounts Receivable) / Curren…

working capital

current ratio

quick ratio

collection period

measure of short-term debt paying ability

measures liquidity and short-term debt paying ability

measures immediate short-term liquidity

measures number of days that receivables are outstanding

working capital

measure of short-term debt paying ability

current ratio

measures liquidity and short-term debt paying ability

Liquidity Ratios

Solvency Ratios

Profitability Ratios

Current Ratio

Measures short-term ability to pay obligations and meet unexp…

Measures ability to survive over a long period of time

Measures income or operating success for a given period of time

Current Assets/Current Liabilities ... -Indicated short-term deb…

Liquidity Ratios

Measures short-term ability to pay obligations and meet unexp…

Solvency Ratios

Measures ability to survive over a long period of time

Return on Equity (ROE)

Earnings per Share (EPS)

Profit Margin

Current Ratio

Net Income/Average SE

Net Income/Average # of common shares outstanding

Net Income/Net Sales

Current Assets/Current Liabilities

Return on Equity (ROE)

Net Income/Average SE

Earnings per Share (EPS)

Net Income/Average # of common shares outstanding

liquidity ratios

solvency ratio

profitability ratio

(LIQUIDITY) current ratio

Measures of the short-term ability of the company to pay its…

Measures of the ability of the company to survive over a long…

Measures of the income or operating success of a company... for…

Formula = Current Assets / Current Liabilities... Indicates sho…

liquidity ratios

Measures of the short-term ability of the company to pay its…

solvency ratio

Measures of the ability of the company to survive over a long…

current ratio

quick (acid test) ratio

accounts receivables turnover

days' sales outstanding

current assets // current liabilities

(cash + short term investments + net current receivables) //…

net credit sales // average net accounts receivable

365 // accounts receivable turnover

current ratio

current assets // current liabilities

quick (acid test) ratio

(cash + short term investments + net current receivables) //…

Working Capital

Current Ratio

Inventory Turnover

Days in Inventory

Current Assets - Current Liabilities

Current Assets/Current Liabilities... Determines dollars of ass…

COGS/Avg. Inventory... Indicates the liquidity of inventory by…

365 days/Inventory Turnover... Avg number of days inventory is…

Working Capital

Current Assets - Current Liabilities

Current Ratio

Current Assets/Current Liabilities... Determines dollars of ass…