Adjustments to net income to reconcile net income to net cash flows from operating activities.
Acid-test Ratio
Cash + Current investments + Accounts receivable/ Current Liabilities
Earnings per share
Net income - preferred stock dividends/ Average shares of common stock outstanding
Return on equity
Net income/ Average stockholders equity
Return on the market value of equity
Net income/ Stock price X Number of shares outstanding
Price-earnings ratio
Stock Price/ Earnings per share
Debt to equity ratio
Total liabilities/ Total stockholders equity
Amortization Expense
+
Decrease in current assets
+
Depreciation expense
+
Increase in a current liability
+
Loss on the sale of assets
+
Decrease in a current liability
-
Gain on sale of assets
-
Increase in current assets
-
Average Days in Inventory
365 Days/ Inventory Turnover Ratio
Average Collection Period
365 Days/ Receivables Turnover Ratio
Inventory Turnover Ratio
Cost of goods sold/ Average Inventory
Current Ratio
Current Assets/ Current Liabilities
Working Capital
Current assets - Current liabilities
Dividend Yield
Dividends per share/ stock price
Asset Turnover
Net Sales/ Average total assets
Times interest earned ratio
Net income + Interest expense + Tax expense/ Interest expense
Gross Profit Ratio
Gross Profit/ Net Sales
Receivables Turnover Ratio
Net Credit Sales/ Average Accounts Receivable
Return on Assets
Net Income/ Average total assets
Profit Margin
Net Income/ Net Sales
Free Cash Flows
Operating Cash Flows + Investing Cash Flows
Cash return on assets
Operating cash flows/ Average total assets
Cash flow to sales
Operating cash flows/ Net sales
