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19 Terms
Working capital
Current assets minus current liabilities.
Current ratio
Current assets divided by current liabilities.
Quick (acid-test) ratio
(Current assets minus inventory and prepaids) divided by current liabilities.
Accounts receivable turnover
Net credit sales divided by average receivables.
Average days to collect receivables
365 divided by accounts receivable turnover.
Inventory turnover
Cost of goods sold divided by average inventory.
Average days to sell inventory
365 divided by inventory turnover.
Debt-to-assets ratio
Total liabilities divided by total assets.
Debt-to-equity ratio
Total liabilities divided by total stockholders' equity.
Number of times interest is earned
Earnings before interest and taxes divided by interest expense.
Plant assets to long-term liabilities
Net plant assets divided by long-term liabilities.
Net margin
Net income divided by net sales.
Asset turnover
Net sales divided by average total assets.
Return on investment (ROI)
Net income divided by average total assets.
Return on equity (ROE)
Net income divided by average total stockholders' equity.
Earnings per share (EPS)
Net earnings available for common stock divided by average outstanding common shares.
Book value per share
(Stockholders' equity minus preferred rights) divided by outstanding common shares.
Price-earnings ratio (P/E ratio)
Market price per share divided by earnings per share.
Dividend yield
Dividends per share divided by market price per share.
