Shared Flashcard Set

Details

Accounting Ratios
Formulas
11
Accounting
Undergraduate 1
02/25/2010

Additional Accounting Flashcards

 


 

Cards

Term
Return on Sales (profit margin)
Definition
net income(before interest & taxes)/sales
or
(net income + interest expense)/sales
Term
asset turnover
Definition
total sales/total assets
Term
return on total assets
Definition
(net income+interest expense)/total assets
Term
return on equity
Definition
net income/total equity
Term
earnings per share
Definition
net income/total number of shares
Term
PE ratio
Definition
market price per share/earnings per share
Term
current ratio
Definition
current assets/current liabilities
Term
quick ratio
Definition
(current assets-inventory)/current liabilities
Term
average age of receivables
Definition
inventory/average daily cost of goods sold
Term
debt to assets
Definition
total liabilities/total assets
Term
inventory turnover
Definition
inventory/average daily cost of goods sold
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