Financial Accounting Ratios


Section
Question | Answer |
---|---|
Debt Ratio | Total liablities/Total assets |
Current ratio | current asset/current liabilities |
Acid-test (quick) ratio | (Cash+ST investments+net current receivables)/(Total current liabilities) |
Receivable Turnover | Annual net sales/Average net receivables |
Days' sales in receivables | 365/Receivables Turnover |
Gross Profit Percentage | Gross Profit/Net sales revenue |
Inventory turnover | COGS/Average Inventory |
Days' sales in inventory | 365/Inventory Turnover |
AP turnover | COGS/Average accounts payable |
AP Period | 365/AP turnover |
Operating cycle | Days sales in receivables (collection period) + Average inventory holding period - AP period |
Asset Turnover ratio | Net 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 |
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