Term
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Definition
(New value - old value) ÷ old value |
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Term
| Asset to equity ratio (leverage) |
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Definition
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Term
| Asset turnover (efficiency) |
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Definition
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Term
| Return on sales ratio (profitability) |
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Definition
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Term
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Definition
net income ÷ total equity Also = leverage x efficiency x profitability |
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Term
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Definition
net income ÷ assets Determines how profitable company is before leverage |
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Term
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Definition
current assets - current liabilities measure of liquidity |
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Term
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Definition
current assets ÷ current liabilities measure of liquidity |
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Term
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Definition
cash + accounts recievable + marketable securities ÷ current liabilities measure of liquidity |
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Term
number of days in inventory |
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Definition
365 ÷ (cost of sales:inventory) Shows the average number of days of items in inventory. |
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Term
| number of days in receivables |
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Definition
365 ÷ (accounts receivable turnover) Reflects the number of days that receivables are outstanding. Target average or lower. |
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Term
| cash flow to net income ratio |
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Definition
net operating cash flow ÷ net income Financial ratio used to analyze the cash flow relationship between cash from operations and reported net income; computed as cash from operations divided by net income |
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Term
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Definition
operating cash flow ÷ long-term liabilities should be close to = 1 or higher |
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Term
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Definition
net income + depreciation - (changes in working capital) - capital expenditures Look what RED COMPANY says about this ratio becasue i think they simplified the ratio for your class |
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Term
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Definition
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Term
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Definition
price per share of stock in market ÷ annual earnings per share |
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