Shared Flashcard Set

Details

Ratios
Ratio formulas for Finance
11
Finance
Undergraduate 3
11/02/2009

Additional Finance Flashcards

 


 

Cards

Term

 

 Asset (Total) Turnover (times per year)

Definition

Net Sales

  Total Assets

 

Term

 

Profit Margin Rate (%)

Definition

Net Income

  Net Sales

 

Term

 

Equity Multiplier (times)

Definition

Total Assets                           

    Total Common Stockholders’ Equity

 

Term
Total Common Stockholders’ Equity
Definition
Total Stockholders’ Equity – Preferred Stockholders’ Equity
Term
  Return on Assets (%) 
Definition

Net Income    

Total Assets

 

Term
Return on Common Stockholders’Equity (%)
Definition

Net Income                          

Common Stockholders’ Equity

 

Term
  Accounts Receivable Turnover(times per year)
Definition

Net Sales                         

Net Accounts Receivable

 

Term
Accounts Receivable Collection Period (days)
Definition

365 days                                              

Accounts Receivable Turnover Ratio

 

Term
  Inventory Turnover (times per year)
Definition

Cost of Goods Sold

   Inventory

 

Term
Inventory Holding Period (days)
Definition

365 days                          

Inventory turnover Ratio

 

Term
  Gross Profit Rate (%)
Definition

Gross Profit

Net Sales

 

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