ACCT 2102 - Chapter 14 Equations

$ Change

Analysis Year - Base Year

Percent Change

Analysis Year - Base Year / Base Year

Working Capital

Current Assets - Current Liabilities

Current Ratio

Current Assets / Current Liabilities

Quick Ratio

Quick Assets / Current Liabilities

Accounts Receivable Turnover

Sales / Average AR

Days’ Sales in Receivables

Average AR / Avg Daily Sales

Inventory Turnover

COGS / Average Inventory

Days’ Sales in Inventory

Average Inventory / Average Daily COGS

Ratio of Fixed Assets to Long-term Liabilities

Fixed Assets / Long-term Liabilities

Ratio of Liabilities to Stockholders’ Equity

Total Liabilities / Total Stockholders’ Equity

Times Interest Earned

Income b4 Income Tax Expense + Interest Exp / Interest Expense

Asset Turnover

Sales / Average Total Assets

Return on Total Assets

Net Income + Interest Expense / Average Total Assets

Return on Stockholders’ Equity

Net Income / Average Total Stockholders’ Equity

Return on Common Stockholders’ Equity

Net Income - Preferred Dividends / Average Common Stockholders’ Equity

EPS on Common Stock

Net Income - Preferred Dividends / Shares of CS

P/E Ratio

Market Price per Share of CS / Earnings per Share of CS

Dividend Yield

Dividends per Share of CS / Market Price per Share of CS