Term
|
Definition
Current Assets/Current Liabilities
Determines Liquidity-has enough liquid assets to meet obligations. Higher the ratio, the better obligations can be made |
|
|
Term
|
Definition
Net Income/Avg Total Assets
Howwell company uses assets to create profit |
|
|
Term
|
Definition
Net Income/Avg Equity
success of financing, investing and operating activities |
|
|
Term
|
Definition
Total Liabilities/Total Liab+Equity
more outstanding debt means more money goes to paying debt load. Limits capital for dividends or grow business |
|
|
Term
|
Definition
COGS/AVGinventory
success of turning inventory into sales. How many times a company replaces inventory in a given period |
|
|
Term
|
Definition
365/invturn
days a firm carries inventory |
|
|
Term
| Acid Test Ratio/Quick Ratio |
|
Definition
Current Assets-Inventory/Current Liabilities
whether current assets can cover current liabilities without selling inventory |
|
|
Term
|
Definition
Sales/Avgacctsrec
times accts rec are turned over or are collected during the period |
|
|
Term
|
Definition
365/AcctsRecTurn
number of days it takes to collect accts rec |
|
|
Term
|
Definition
Owner's Equity/#shares ofstockatheendoftheyear
Liquidation Value |
|
|
Term
|
Definition
| how expensive a stock is compared to earnings |
|
|
Term
| Investopedia for deeper definitions dawg |
|
Definition
|
|
