Shared Flashcard Set

Details

Financial Ratios
Common accounting equations
20
Accounting
Undergraduate 2
05/09/2016

Additional Accounting Flashcards

 


 

Cards

Term
Working Capital
Definition
= current assets - current liabilities
Term
Current ratio
Definition
current assets/current liabilties
Term
Cash ratio
Definition
(Cash + Cash equivalents)/current liabilities
Term
Quick Ratio
Definition
(Cash + Short Term Investments + Accts Receivable)/Current Liabilities
Term
Inventory Turnover
Definition
COGS/Average Inventory
Term
Days' Sales in Inventory
Definition
365/Inventory Turnover
Term
Gross Profit Percentage
Definition
Gross Profit/Sales Revenue
Term
A/R Turnover Ratio
Definition
Net Credit Sales/(Average Net A/R)
Term
Days' Sales in Receivable
Definition
365/(A/R Turnover Ratio)
Term
Debt Ratio
Definition
Total Liabilities/Total Assets
Term
Debt to Equity
Definition
Total Liabilities/Total Equity
Term
Times-Interest Earned Ratio
Definition
(net income + interest expense + income tax expense)/(interest expense)
Term
Profit Margin Ratio
Definition
Net income/Net sales
Term
Rate of Return on Total Assets (ROA)
Definition
(Net income + interest expense)/Average Total Assets
Term
Asset Turnover Ratio
Definition
Net Sales/Average Total Assests
Term
Rate of Return on Common Stockholder's Equity
Definition
(Net income - preferred dividends)/Average Stockholder's Equity
Term
Earnings Per Share
Definition
(Net income - preferred dividends)/Average Common Shares
Term
Price-Earnings Ratio
Definition
Market price per share/EPS
Term
Dividend Yield
Definition
Annual dividend/Market price
Term
Dividend Payout
Definition
Annual dividend/EPS
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