Accounting Ratios and Equations

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6 Terms

1
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Return on Equity

Net income / Average Stockholders’ Equity

2
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Dividend Yield

Dividends per share / Stock price

3
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Earnings per share

Net income - Dividends on preferred stock / Average shares of common stock outstanding

4
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Price-Earnings Ratio

Stock price / Earnings per share 

5
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Debt to Equity Ratio

Total liabilities / Stockholders’ Equity

6
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Times Interest Earned Ratio

EBIT (Net Income + Interest Expense + Tax Expense) / Interest Expense