FAR CPA Ratios

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Last updated 10:38 PM on 4/9/26
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26 Terms

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Earnings Per Share
Income available to common shareholders / Weighted average common shares outstanding
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Price-to-Earnings Ratio
Price per share/ Basic earnings per share
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Dividend Payout
Sales (net)/ Average total assets
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Asset Turnover
Sales (net)/ Average total assets
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Times Interest Earned
Income before interest expenses and taxes/ Interest expense
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Equity Multiplier
Total assets/ Total equity
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Total Debt Ratio
Total liabilities/ Total assets
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Debt-to-Equity Ratio
Total liability/ Total equity
10
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Cash Conversion Cycle
Days sales in AR + Days in inventory - Days of payable outstanding
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Days of Payable Outstanding
Ending AP/ (COGS/365)
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Accounts Payable Turnover
COGS/ Average AP
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Days in Inventory
Ending inventory/ (COGS/365)
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Inventory Turnover
COGS/ Average inventory
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Days Sales in AR
Ending AR (net)/ (Sales (net)/365)
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AR Turnover
Sales (net)/ Average AR (net)
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Quick Ratio
Cash and cash equivalents + Short-term marketable securities + Receivables (net) / Current Liabilities
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Current Ratio
Current assets/ Current liabilities
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Operating Cash Flow Ratio
Cash flow from operations/ Current liabilities
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Return on Equity
Net income/ Average total equity
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DuPont Return on Asset

Profit margin * Asset turnover

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Return on Assets
Net income/ Average total assets
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Return on Sales

Income before interest income, interest expense, and taxes (EBIT)/ Sales (net)

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Profit Margin
Net income/ Sales (net)
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Gross (Profit) Margin

(Sales (net) - COGS)/ Sales (net)

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Dividend Payout Ratio

DPS/EPS or Total dividends/ Net income