# Study sets matching "final exam financial statement analysis ratios"

Current Assets / Current Liabilities

(Cash + Short-Term Investments + Accoun…

Total Liabilities / Total Assets

Long-Term Debt / (Long-Term Debt + Stoc…

Current Ratio

Quick Ratio

Debt Ratio

Long-Term Debt to Capital Ratio

Current Assets / Current Liabilities

Current Ratio

(Cash + Short-Term Investments + Accoun…

Quick Ratio

Horizontal Analysis

Trend Percentage

Vertical Analysis

Working Capital

($ change from one period to the next) / ($ amount of base yea…

(Any year $) / (Base year $) x 100

(Each income statement item) / (Net Sales Revenue) x 100

Current assets - Current liabilities

Horizontal Analysis

($ change from one period to the next) / ($ amount of base yea…

Trend Percentage

(Any year $) / (Base year $) x 100

Profitablity Ratios

liquidity ratios

Total Asset Turnover Ratio (Efficiency…

Inventory Turnover Ratio (Efficiency Ra…

gross operating net profit

current quick

Sales (Revenues) / Total Assets... Efficiency with which a compa…

Costs of Goods sold/ inventory

Profitablity Ratios

gross operating net profit

liquidity ratios

current quick

Two phases of financial statement analy…

Computation phase

Vertical analysis on the balance sheet

Horizontal analysis

Computation and interpretation

Vertical analysis horizontal n ratio analysis

On the balance sheet everything is recorded as a percentage of…

Percentage change for individual items on the financial statem…

Two phases of financial statement analy…

Computation and interpretation

Computation phase

Vertical analysis horizontal n ratio analysis

Current ratio

Accounts receivable turnover

Inventory turnover

Debt to total assets

Current assets/current liability

Net credit sales/average net accounts receivable

Cost of goods sold/average inventory

Total debt/total assets

Current ratio

Current assets/current liability

Accounts receivable turnover

Net credit sales/average net accounts receivable

Current Ratio

Quick Ratio

Operating-Cash-Flow-to-current-liabilit…

Times Interest Earned

Current Assets/Current Liabilities

(Cash+Market Securities+A/R)/Current Liabilites

Operating Cash Flow/Avg Current Liabilities

EBIT/Interest Expense

Current Ratio

Current Assets/Current Liabilities

Quick Ratio

(Cash+Market Securities+A/R)/Current Liabilites

inventory turnover

accounts receivable turnover

total asset turnover

days sales in inventory

cost of goods sold/average inventory

net sales/average accounts receivable

net sales/average total assets

(ending inventory/cost of goods sold)*365

inventory turnover

cost of goods sold/average inventory

accounts receivable turnover

net sales/average accounts receivable

Accounts Receivable Turnover

Average Collection Period

Inventory Turnover

Average Days Inventory Held

Net Credit Sales/Average Accounts Receivable = #

365 Days/Accounts Receivable Turnover = #

Cost of Goods Sold/Average Inventory = #

365 Days/Inventory Turnover = #

Accounts Receivable Turnover

Net Credit Sales/Average Accounts Receivable = #

Average Collection Period

365 Days/Accounts Receivable Turnover = #

Profitability Ratios

Tests of Profitability

Liquidity

Tests of Liquidity

ROE, ROA, Financial Leverage Percentage, EPS, Quality of Incom…

focus on measuring the adequacy of income by comparing it to o…

refers to a company's ability to meet its currently maturing d…

focus on the relationship between current assets and current l…

Profitability Ratios

ROE, ROA, Financial Leverage Percentage, EPS, Quality of Incom…

Tests of Profitability

focus on measuring the adequacy of income by comparing it to o…

current ratio

acid-test ratio

accounts receivable turnover

inventory turnover

short-term debt paying ability

immediate short-term debt-paying ability

efficiency of collection

efficiency of inventory management

current ratio

short-term debt paying ability

acid-test ratio

immediate short-term debt-paying ability

Current ratio

Acid-test ratio

Accounts receivables turnover

Inventory turnover

Current assets/ current liabilities

Cash+ Short-term investments+current receivables/ current liab…

Net sales/ Average accounts receivable, net

Costs of goods sold/ Average inventory

Current ratio

Current assets/ current liabilities

Acid-test ratio

Cash+ Short-term investments+current receivables/ current liab…

Debt to Total Assets

Debt to Equity

Short-Term Debt Ratio

Times Interest Earned

Total Liabilities/Total Assets

Total Liabilities/Total Equity

Current Liabilities/Total Liabilities

EBIT/Interest Expense

Debt to Total Assets

Total Liabilities/Total Assets

Debt to Equity

Total Liabilities/Total Equity

Measures of Liquidity (1)

Measures of Leverage (2)

Measures of Management (4)

Measures of Profitability (5)

Current Ratio

Debt Ratio, Debt to Equity Ratio

A/R Turnover, Days Sales in A/R, Inventory Turnover, Days Sale…

Earnings Per Share (EPS), Book Value per Share, Price-Earnings…

Measures of Liquidity (1)

Current Ratio

Measures of Leverage (2)

Debt Ratio, Debt to Equity Ratio

Liquidity Ratios

Activity Ratios

Profitability Ratios

Coverage Ratios

current ratio, quick (acid test) ratio, current cash debt cove…

receivables, inventory, and asset turnover

profit margin on sales, rate of return on assets, rate of retu…

debt to total assets, times interest earned, cash debt coverag…

Liquidity Ratios

current ratio, quick (acid test) ratio, current cash debt cove…

Activity Ratios

receivables, inventory, and asset turnover

Current Ratio

Acid-test Ratio

Accounts Receivable Turnover

Inventory Turnover

current assets ... /current liabilities

cash + short-term investments + current receivables ... /current…

net sales ... /avg. accounts receivable, net

COGS ... /avg. inventory

Current Ratio

current assets ... /current liabilities

Acid-test Ratio

cash + short-term investments + current receivables ... /current…

Working Capital

Current Ratio

Inventory Turnover

Days Supply of Inventory

Current Assets - Current Liabilities

Current Assets/Current Liabilities

Cost of Goods Sold/Inventories

365/Inventory Turnover

Working Capital

Current Assets - Current Liabilities

Current Ratio

Current Assets/Current Liabilities

Current Ratio

Acid Test (Quick) Ratio

Working Capital

Accounts Receivable Turnover

Current Assets/Current Liabilities... - Liquidity

Quick Assets/Current Liabilities... - Liquidity

Current Assets-Current Liabilities... - Liquidity

Sales/Accounts Receivable... - Asset Management

Current Ratio

Current Assets/Current Liabilities... - Liquidity

Acid Test (Quick) Ratio

Quick Assets/Current Liabilities... - Liquidity

current ratio

acid-test ratio

accounts receivable turnover

inventory turnover

current assets / current liabilities

cash + short-term investments + current receivables / current…

net sales / average accounts receivable, net

cost of goods sold / average inventory

current ratio

current assets / current liabilities

acid-test ratio

cash + short-term investments + current receivables / current…

Current Ratio

Acid-test Ratio

quick assets

Accounts Receivable Turnover Ratio

current assets divided by current liabilities

quick assets divided by current liabilities

cash, short-term investments, accounts receivable

net sales divided by average accounts receivable

Current Ratio

current assets divided by current liabilities

Acid-test Ratio

quick assets divided by current liabilities

Current Ratio

Quick Ratio

Cash Flow Liquidity

Accounts Receivable Turnover

Current Assets/Current Liabilities

(Cash+Short-Term Investments + Accounts Receivable)/Current Li…

(Cash+Short-Term Investments+Cash Flow from Operations)/Curren…

Net Sales/Average Accounts Receivable

Current Ratio

Current Assets/Current Liabilities

Quick Ratio

(Cash+Short-Term Investments + Accounts Receivable)/Current Li…

Current Ratio

Acid-Test Ratio

Accounts Receivable Turnover

Inventory Turnover

Current Assets / Current Liabilities

Cash + Short-Term Investments + Current Receivables / Current…

Net Sales / Average Accounts Receivable, net

Cost of Goods Sold / Average Inventory

Current Ratio

Current Assets / Current Liabilities

Acid-Test Ratio

Cash + Short-Term Investments + Current Receivables / Current…