#### 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 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

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)

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 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

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…

Return on equity ratio (profitability…

Debt to equity ratio (leverage ratio)

Current ratio (solvency ratio)

Inventory turnover ratio (asset turnov…

Net income/average stockholder's equity

Average total liabilities/average stockholder's equity

Current assets/current liabilities

Cost of goods sold/average inventory

Return on equity ratio (profitability…

Net income/average stockholder's equity

Debt to equity ratio (leverage ratio)

Average total liabilities/average stockholder's equity

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

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

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 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

acid test

receivable turnover

inventory turnover

current assets/current liabilites

(cash + ST investment + net receivables)/current liabilites

net credit sales/average net receivables

cost of goods sold/average inventory

current ratio

current assets/current liabilites

acid test

(cash + ST investment + net receivables)/current liabilites

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

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

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…

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…

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

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

Working capital

Current ratio

Free cash flow

Debt to assets ratio

Current Assets minus Current Liabilities

Current Assets divided by Current Liabilities

Net cash provided by operating activities - cash used for cap…

total liabilities / total assets

Working capital

Current Assets minus Current Liabilities

Current ratio

Current Assets divided by 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

Current Ratio

Debt to Assets Ratio

Acid-test Ratio

Receivable Turnover Ratio

Current Assets/Current Liabilities

Total Liabilities/Total Assets

(Cash+Net Receivables+Current Investments)/Current Liabilities)

Credit Sales/Average Net Receivables

Current Ratio

Current Assets/Current Liabilities

Debt to Assets Ratio

Total Liabilities/Total Assets

Return on Equity (ROE)

Dividend Payout

Return on Sales

Asset Turnover

Profitability Ratio. Measures the return to shareholders base…

Profitability Ratio. Measures the portion of firms profits pa…

Profitability Ratio. What is left of sales after all expenses…

Measures how much sales the firm generates for each dollar in…

Return on Equity (ROE)

Profitability Ratio. Measures the return to shareholders base…

Dividend Payout

Profitability Ratio. Measures the portion of firms profits pa…

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

Gross Margin Percentage

Return On Sales Percentage (operating…

Net Margin

Operating Profit Margin vs. EBITDA Mar…

-Gross Margin Percentage=Gross Margin/Sales x 100. ... -Ex: Tai…

-Return on Sales vs. Gross Margin Percentage: Return on Sales…

Net Margin=Net Profit/Revenue ... >>>>>>> Net Profit=Revenues-C…

Operating Margin includes operating expenses such as deprecia…

Gross Margin Percentage

-Gross Margin Percentage=Gross Margin/Sales x 100. ... -Ex: Tai…

Return On Sales Percentage (operating…

-Return on Sales vs. Gross Margin Percentage: Return on Sales…

Inventory Turnover

Days in inventory

Asset Turnover

Accounts Receivable Turnover

Cost of goods sold/Average Inventory... LIQUIDITY

365/Inventory Turnover... LIQUIDITY

Net Sales/Average total assets... PROFITABILITY

Net Credit Sales/Average net accounts receivable... LIQUIDITY

Inventory Turnover

Cost of goods sold/Average Inventory... LIQUIDITY

Days in inventory

365/Inventory Turnover... LIQUIDITY

Gross Profit Margin %

Profit Margin (Operating Profit) %

Return on Capital Employed (ROCE) %

Profit before Tax %

gross profit/revenue*100

operating profit/revenue*100

operating profit/(total assets-current liabilities)*100

profit before tax/revenue*100

Gross Profit Margin %

gross profit/revenue*100

Profit Margin (Operating Profit) %

operating profit/revenue*100

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

Acid-Test Ratio

Accounts Receivable Turnover

Inventory Turnover

Current assets/ Current Liabilities... Short-Term Debt Paying a…

Cash+Short-term investments + Current receivables/ Current Li…

Net Sales/Avg accounts receivable, net... Efficiency of collect…

Cost of Goods sold/ Avg Inventory... Efficiency of inventory ma…

Current Ratio

Current assets/ Current Liabilities... Short-Term Debt Paying a…

Acid-Test Ratio

Cash+Short-term investments + Current receivables/ Current Li…

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

working capital

current ratio

inventory turnover

days in inventory

=current assets - current liabilities... liquidity ratio

=current assets/ current liabilities... liquidity ratio... 1.25: co…

=cost of goods sold/ average inventory... liquidity ratio... 8: com…

=365 days/ inventory turnover... liquidity ratio... 46: company tak…

working capital

=current assets - current liabilities... liquidity ratio

current ratio

=current assets/ current liabilities... liquidity ratio... 1.25: co…