Financial Accounting Ratios

jehinovi's version from 2016-05-13 09:55


Question Answer
Debt RatioTotal liablities/Total assets
Current ratiocurrent asset/current liabilities
Acid-test (quick) ratio(Cash+ST investments+net current receivables)/(Total current liabilities)
Receivable TurnoverAnnual net sales/Average net receivables
Days' sales in receivables365/Receivables Turnover
Gross Profit PercentageGross Profit/Net sales revenue
Inventory turnoverCOGS/Average Inventory
Average holding period365/Inventory Turnover
AP turnoverCOGS/Average accounts payable
AP Period365/AP turnover
Operating cycleDays sales in receivables (collection period) + Average inventory holding period - AP period
Asset Turnover ratioNet sales/Average total assets
Return on assets ratio (ROA)(Net income+interest expense)/Average total assets
Times interest earned (interest coverage ratio)Operating income/interest expense
Earnings per share(Net share-dividend for preferred stock)/(Average number of common shares outstanding)
Return on Stockholder's equity (ROE)(Net income-Preferred dividends)/(Average common stockholder's equity)
Dividend Yield Ratio(Dividend per share of ordinary/preference shares)/(Market price per share of preference/ordinary shares)
Free cash flow(Net cash provided by operating activities)- cash payments for investments in PPE