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Financial ratios cpa

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whale47's version from 2016-10-30 14:45

Section

Question Answer
Current rationCurrent assets/current liabilities
Quick ratioCash & cash equivalents + marketable securities + net receivables / current liabilities
Cash ratioCash and cash equivalents + marketable securities/ current liabilities
A/R turnoverNet credit sale/ avg acounts receivable
Inventory turnoverCogs/ avg inventory
Net profit marginNet income/ net sales
Return on total asetsNet income/ avg total assets
Eps(Net income - preferred dividends)/ weighted avg no of common shares outstanding
P/E ratio Marketable price per share / diluted EPS
Debt/ equityTotal liabilities/ common stockholders equity
Debt ratioTotal liabilities / total assets
Times interested earnedEarning before interest and taxes / interest
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