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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 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 (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…

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)

ROCE

Gross Profit Mark-up

Gross Profit Margin

Current Ratio

(Profit before Interest & Tax÷Capital Employed) × 100

(Gross Profit÷ Cost of Sales) ×100

(Gross Profit÷Sales) × 100

Current Assets÷Current Liabilities

ROCE

(Profit before Interest & Tax÷Capital Employed) × 100

Gross Profit Mark-up

(Gross Profit÷ Cost of Sales) ×100

Profitability

Managerial Effectiveness

Financial Stability

Cash Flow

%Gross Profit... %Net Profit... %Return on Equity... %Return on Assets

(Days)Turnover of Inventories Rate... (Days)Turnover of A/c Rece…

_:1 Current... _:1 Quick... %Debt... %Equity

%Cash Flow to Revenue... %Cash Flow Adequacy... (Times)Long-term De…

Profitability

%Gross Profit... %Net Profit... %Return on Equity... %Return on Assets

Managerial Effectiveness

(Days)Turnover of Inventories Rate... (Days)Turnover of A/c Rece…

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…

working capital

current ratio

current cash debt coverage

inventory turnover

current assets- current liabilities

current assets/current liabilities

money provided by operating activities/average current liabil…

COGS/Avg. Inventory

working capital

current assets- current liabilities

current ratio

current assets/current liabilities

Earnings Per Share Ratio

Retained Earnings

Book Value

Debt to Equity Ratio

Net Income (less preferred dividends) ... ----------------------…

Beg RE + Net Income - Dividends

Liability - Unamoritized Discount

Total Liability ... ----------------------------------------... Tot…

Earnings Per Share Ratio

Net Income (less preferred dividends) ... ----------------------…

Retained Earnings

Beg RE + Net Income - Dividends

Return on Equity

Return on Total Assets

Net Profit Margin

Gross Profit Margin

Shows the return on the owner's investment in the business.... T…

Shows how well the business is using its assets to generate p…

Shows the amount of profit generated from each dollar of sale…

Shows the ability to generate enough profit to cover operatin…

Return on Equity

Shows the return on the owner's investment in the business.... T…

Return on Total Assets

Shows how well the business is using its assets to generate p…

Current Ratio

Accounts Receivable Turnover

Average Collection Period

Inventory Turnover

Current Assets... -----------------------... Current Liabilities

net credit sales ---------------average accounts receivable

365 days... ---------------... Accounts Receivable Turnover

Cost of Goods Sold... ----------------------------... Average Inven…

Current Ratio

Current Assets... -----------------------... Current Liabilities

Accounts Receivable Turnover

net credit sales ---------------average accounts receivable

Acid Test (Quick) Ratio

Acid Test Ratio Details

Inventory Turnover

Inventory turnover Details

Cash + A/R + Marketable Securities + CD's within 1 year / Cur…

tell whether a company's current liabilities can be paid with…

How many times the company sells its average inventory

Acid Test (Quick) Ratio

Cash + A/R + Marketable Securities + CD's within 1 year / Cur…

Acid Test Ratio Details

tell whether a company's current liabilities can be paid with…

Return on equity

Return on Assets

Net profit margin

Earnings per share

NI/avergage Total Stockhold's Equity

net income/average total assets

Net Income/Net Sales Revenue

Net Income/Average Number of Common Shares Outstanding

Return on equity

NI/avergage Total Stockhold's Equity

Return on Assets

net income/average total assets

Return on Equity (ROE)

Return on Assets (ROA)

Financial Leverage Percentage

EPS

Net Income/... Average Stockholders Equity... Profitability

Net Income + Interest Expense (net of tax)/... Average Total Ass…

Return on Equity - Return on Assets... Profitability

Net Income/... Outstanding Shares... Profitability

Return on Equity (ROE)

Net Income/... Average Stockholders Equity... Profitability

Return on Assets (ROA)

Net Income + Interest Expense (net of tax)/... Average Total Ass…

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…

asset turnover

return on assets

price- earnings (PE) ratio

payout ratio

net sales/avg. total assets ... ^profitability

net inc./avg. total assets... ^profitability

Stock price per share/ earnings per share... ^profitability

cash dividends declared on common stock/ net inc. ... ^profitabi…

asset turnover

net sales/avg. total assets ... ^profitability

return on assets

net inc./avg. total assets... ^profitability

Return on capital employed

Gross profit mark up/margin percentage

Net profit percentage

Current ratio 2:1

Net profit + interest / capital employed x100

Gross profit / cost of sales x100

Net profit + interest / sales x100

Current assets / current liabilities :1

Return on capital employed

Net profit + interest / capital employed x100

Gross profit mark up/margin percentage

Gross profit / cost of sales x100

acid-test ratio

gross margin ratio

inventory turnover

days' sales in inventory

cash and cash equivalents plus short-term investments plus cu…

net sales minus cost of goods sold divided by net sales

cost of goods sold divided by average inventory

ending inventory divided by cost of goods sold times 365

acid-test ratio

cash and cash equivalents plus short-term investments plus cu…

gross margin ratio

net sales minus cost of goods sold divided by net sales

Current ratio

Acid test ratio

Receivables turn over ratio

Inventory turn over ratio

Current assets/current liabilities

Cash+short term investments+net receivables/current liabilities

Net credit sales/avg receivables

Cogs/avg inventory

Current ratio

Current assets/current liabilities

Acid test ratio

Cash+short term investments+net receivables/current liabilities

Return on Equity

Return on Assets

Financial Leverage Percentage

Earnings Per Share

net income/average stockholders' equity

Net Income + Interest expense (Net interest * 1-tax rate)/ av…

Return on Equity- Return on Assets

Net Income/average number of shares of common stock outstanding

Return on Equity

net income/average stockholders' equity

Return on Assets

Net Income + Interest expense (Net interest * 1-tax rate)/ av…

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) //…

Return on Equity

Return on Total Assets

Net profit Margin

GROSS PROFIT MARGIN

looks at the return the owner is getting for the money he has…

It looks at how well the business' assets are performing. Giv…

Looks a the return of the final profit figure generated from…

Looks at the return of profit made directly from the buying a…

Return on Equity

looks at the return the owner is getting for the money he has…

Return on Total Assets

It looks at how well the business' assets are performing. Giv…

Working Capital

Current Ratio

Cash Ratio

Acid/Quick Ratio

H! A business's ability to meet its short term obligations wi…

H! The company's ability to pay current liabilities from curr…

H! The company's ability to pay current liabilities from cash…

H! The company's ability to pay all its current liabilities i…

Working Capital

H! A business's ability to meet its short term obligations wi…

Current Ratio

H! The company's ability to pay current liabilities from curr…

Gross Profit Margin

Return on Sales (Net Profit Margin)

Asset Turnover

Return on Assets

Gross Profit/Net Sales

Net Income/Net Sales

Net Sales/Average Total Assets

Net Income/Average Total Assets

Gross Profit Margin

Gross Profit/Net Sales

Return on Sales (Net Profit Margin)

Net Income/Net Sales

Debt Ratio

Current Ratio (Liquidity - DPF)

Return on Sales (Profitability - DPF)

Asset Turnover (Efficiency)

Total Liabilities / Total Assets... ... (represents the proportion…

Current Assets / Current Liabilities ... (ability to pay its de…

Net Income / Sales ... (pennies of profit on every dollar of sa…

Sales / Total Assets... (overall measure of company efficiency…

Debt Ratio

Total Liabilities / Total Assets... ... (represents the proportion…

Current Ratio (Liquidity - DPF)

Current Assets / Current Liabilities ... (ability to pay its de…

current ratio

debt to equity ratio

receivables turnover ratio

inventory turnover ratio

current assets/current liabilities

total liabilities/owner's equity

net sales (or credit sales)/average accounts receivable

COGS/average inventory

current ratio

current assets/current liabilities

debt to equity ratio

total liabilities/owner's equity

Asset Turnover Ratio

Inventory Turnover Ratio

Current Ratio

Accounts Receivable Turnover Ratio

Net Sales/Total Assets

COGS / Average Inventory

Current Assets / Current Liabilities

Net Credit Sales / Average Receivables

Asset Turnover Ratio

Net Sales/Total Assets

Inventory Turnover Ratio

COGS / Average Inventory

Analyzing Liquidity

Current Ratio

Quick Ratio

Merchandise Inventory Turnover

analyze the ability of the business to pay current liabilitie…

current assets / current liabilities... - indicates whether a co…

cash + A/R + marketable securities (investments) / current li…

cost of goods sold / average inventory... - indicates the number…

Analyzing Liquidity

analyze the ability of the business to pay current liabilitie…

Current Ratio

current assets / current liabilities... - indicates whether a co…

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

Profit Margin

Return on Equity

Return on Assets

Earnings Per Share

Net Income/Net Revenue ... *Profitability

Net Income/Average Common Equity ... *Profitability

Net Income/Average Total Assets ... *Profitability

Net Income/Average Number of Common Shares Outstanding ... *Prof…

Profit Margin

Net Income/Net Revenue ... *Profitability

Return on Equity

Net Income/Average Common Equity ... *Profitability

How to calculate net income?

How to calculate Return on Shareholder…

What does Return on Shareholders' Equi…

What category does the ROE ratio fall…

Sales revenue - cost of good sold - other expenses

(Net income - preferred stock dividends) /... Shareholders' Equity

Rate of return generated by a business for its common shareho…

Profitability

How to calculate net income?

Sales revenue - cost of good sold - other expenses

How to calculate Return on Shareholder…

(Net income - preferred stock dividends) /... Shareholders' Equity

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

Stability/Leverage

Profitability

Current Ratio

Businesses ability to pay it's debts when they fall due.... Curr…

Businesses ability to survive long term. ... Debt to equity ratio.

Businesses ability to make an acceptable level of profit. ... Gr…

Measures businesses ability to pay short term debts using cur…

Liquidity

Businesses ability to pay it's debts when they fall due.... Curr…

Stability/Leverage

Businesses ability to survive long term. ... Debt to equity ratio.

Receivables turnover ratio

Average collection period

Inventory turnover ratio

Average days in inventory

net credit sales/ave. accounts receivable

365/receivables turnover ratio

COGS/ave. inventory

365/inventory turnover ratio

Receivables turnover ratio

net credit sales/ave. accounts receivable

Average collection period

365/receivables turnover ratio

current ratio

quick ratio

gross profit margin

net profit margin / operating on sales

current assets / current liabilities

current assets - inventory / current liabilities

gross profit / revenue x 100%

operating profit / sales x 100%

current ratio

current assets / current liabilities

quick ratio

current assets - inventory / current liabilities

Current Ratio

Quick or Acid-Test Ratio

Current Cash Debt Coverage Ratio

Receivables Turnover

measures short-term debt-paying ability ... = Current assets / C…

measures immediate short-term liquidity ... = Cash, Short-term i…

measures a company's ability to pay off its current liabiliti…

measures liquidity of receivables ... = Net sales / Average trad…

Current Ratio

measures short-term debt-paying ability ... = Current assets / C…

Quick or Acid-Test Ratio

measures immediate short-term liquidity ... = Cash, Short-term i…

Gross profit margin

Profit Margin

Return on capital employed (ROCE)

Current ratio

(Gross Profit / Revenue) = (Revenue-COS / Revenue)

(Net Profit / Revenue) = (Operating Profit±Net Interest / Rev…

(Operating Profit) / (Total Assets - Current Liabilities)

Current Assets / Current Liabilities

Gross profit margin

(Gross Profit / Revenue) = (Revenue-COS / Revenue)

Profit Margin

(Net Profit / Revenue) = (Operating Profit±Net Interest / Rev…

Return on Equity

Earnings per Share

Current Ratio

Inventory Turnover Ratio

Net Income / Avg. Stock. Eq.

Net Income / # shares of stock

Total Current Assets / Total Current Liabilities

CoGS / Avg. Inventory

Return on Equity

Net Income / Avg. Stock. Eq.

Earnings per Share

Net Income / # shares of stock