Finance Test 1
Quick Ratio
Current Assets - Inventory / Current Liabilities
Average Collection Period
Accounts Receivable/ (Sales/365)
Inventory Turnover Ratio
COGS/ Inventory
Market to Book Ratio
Market Value of Equity (Common stock price * # of stocks) / Book Value of equity(Total Shareholders Equity)
Earnings Per Share ( EPS)
Net Income/ # of C.S. shares
Return on Assets (ROS)
Net income/ Total Assets
Return on Investment ( ROI or ROE)
Net income/ Total Equity
Profit Margin on Sales
Net income/Sales
Total Asset Turnover Ratio
Sales/ Total Assets
Payout Ratio
The proportion of Net income that will be paid out via Dividends
Total equity Multiplier
Total Assets/ Total Equity .... or 1 + Debt Equity Ratio
Total Equity Ratio
Total Equity / Total Assets
Current Ratio
current assets/current liabilities
Asset Management Ratios
financial ratios that measure how effectively a firm is managing its assets
P/E Ratio
price per share/earnings per share
Short term liquidity ratios
ratios that indicate the company's ability to survive over the short term
Long term liquidity Ratios
ratios that measure the ability of the firm to repay its long term liabilities/ long term debt
Profitability Ratios
ratios that measure the rate of return a firm is earning on various measures of investment
Market Value Ratios
ratios that relate the firm's stock price to its earnings and book value per share
Total Debt Ratio
total debt/total assets
Debt Equity Ratio
total debt/total equity
