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Financial Ratios
Test 1
Term | Definition |
---|---|
Current Ratio | Current Assets/Current Liabilities |
Quick Ratio (Acid-test Ratio) | (Current Assets - Inventory)/Current Liabilities |
Inventory Turnover | COGS/Inventory |
Inventory Holding Period | 365/Inventory Turnover Ratio |
Accounts Receivable Turnover | Credit Sales/Accounts Receivable |
Average Collection Period | 365/Accounts Receivable Turnover Ratio |
A/P Turnover | COGS/Accounts Paybable |
Fixed Asset Turnover | Sales/Fixed Assets |
Total Asset Turnover | Sales/Total Assets |
Debt Ratio | Total Debt/Total Assets |
Debt-to-Equity | Total Debt/Total Equity |
Equity Multiplier | Total Assets/Total Equity |
Times Interest Earned | EBIT/Interest |
Gross Profit Margin | (Sales - COGS)/Sales |
Operating Profit Margin | EBIT/Sales |
Profit Margin | Net Income/Sales |
ROA | Net Income/Total Assets |
ROE | Net Income/Equity |
Dividend Payout | Common Stock Dividends/Net Income |
Retention Ratio | Addition to Retained Earnings/Net Income OR 1 - Dividend Payout Ratio |
DuPont Analysis | Examines ROE analyzing profit margin, total asset turnover, and financial leverage |
Working Captial | Current Assets - Current Liabilities |
DuPont Model ROE | (Asset Turnover*Profit Margin*Equity Multiplier)/Total Asset Turnover |
Gross Profit | Sales - COGS |
EPS | Net Income/Shares |