Financial Statement Basics
This financial statement lists all company accounts that are separated by category. It doesn't include temporary accounts.
Return on Equity Ratio: Formula
Net income / average stockholder's equity
Current Ratio / Working Capital Ratio: Formula
Current assets / current liabilities
(Cash + cash equivalents) / current liabilities
A financial statement that can tell you what amount of money your company lost or earned over a set amount of time.
Total liabilities / total assets
The liquidity ratio that includes the most stringency. It looks only at a company's cash and cash equivalents.
These are assets that an organization may convert into cash inside of a single year.
Statement of Retained Earnings
We look at this financial statement to see how much of a company's earnings were kept and invested back into the company.
This ratio allows us to judge the return associated with money that shareholders have invested.
Ratios that use information drawn from financial statements. Businesses can use these when they want to judge how productive and efficient they are.
We use this term when discussing the rate at which we can transform an asset into cash.
This shows all of a company's accounts after any financial adjustments have been completed, meaning that it offers a timely and accurate looks at a company's accounts.
(Cash & Cash Equivalents + Accounts Receivable) / Liabilities
These accounts always remain on the chart of accounts for a company once they are opened.
Earnings per Share Ratio: Formula
Net income / weighted average shares of outstanding common stock
Looking at this ratio will show you the amount of assets that a company used debt to finance.
We look at this ratio to judge a company's ability to pay off its short-term debts using assets with the most liquidity.
Earnings per Share Ratio (EPS)
Complete this ratio to see the amount a company earns in net income for each share of its common stock.
Current Ratio / Working Capital Ratio
A ratio used to see how many current liabilities a company has in comparison to its current assets.
Financial Statement Basics
This financial statement lists all company accounts that are separated by category. It doesn't include temporary accounts.
Return on Equity Ratio: Formula
Net income / average stockholder's equity
Current Ratio / Working Capital Ratio: Formula
Current assets / current liabilities
(Cash + cash equivalents) / current liabilities
A financial statement that can tell you what amount of money your company lost or earned over a set amount of time.
Total liabilities / total assets
The liquidity ratio that includes the most stringency. It looks only at a company's cash and cash equivalents.
These are assets that an organization may convert into cash inside of a single year.
Statement of Retained Earnings
We look at this financial statement to see how much of a company's earnings were kept and invested back into the company.
This ratio allows us to judge the return associated with money that shareholders have invested.
Ratios that use information drawn from financial statements. Businesses can use these when they want to judge how productive and efficient they are.
We use this term when discussing the rate at which we can transform an asset into cash.
This shows all of a company's accounts after any financial adjustments have been completed, meaning that it offers a timely and accurate looks at a company's accounts.
(Cash & Cash Equivalents + Accounts Receivable) / Liabilities
These accounts always remain on the chart of accounts for a company once they are opened.
Earnings per Share Ratio: Formula
Net income / weighted average shares of outstanding common stock
Looking at this ratio will show you the amount of assets that a company used debt to finance.
We look at this ratio to judge a company's ability to pay off its short-term debts using assets with the most liquidity.
Earnings per Share Ratio (EPS)
Complete this ratio to see the amount a company earns in net income for each share of its common stock.
Current Ratio / Working Capital Ratio
A ratio used to see how many current liabilities a company has in comparison to its current assets.
