accounting cheat sheet

accounting cheat sheet - Liquidity Ratios Current ratio =...

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Liquidity Ratios Current ratio = current assets/current liabilities measures short term debt paying ability Acid-test ratio = cash+short-term investments+receivables/current liabilities measures short term liquidity Receivables Turnover = Net Credit Sales/Average net receivables measures liquidity of receivables Inventory turnover = Cost of Good Sold/Average inventory measures liquidity of inventory Profitability Ratios Profit Margin = Net Income/Net Sales measures net income generated by each dollar of sales Asset Turnover = Net Sales/Average Assets measures how efficiently assets are used to generate sales Return on assets = Net income/average assets measures overall profitability of assets Return on Common Stock Holders Equity = Net Income/ Average common stockholder’s equity measures profitability of owners investments Earnings per share = net income/weighted average common shares outstanding measures net income earned on each share of common stock Price-earnings ratio = market price per share of stock/earnings per share
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This note was uploaded on 05/06/2010 for the course BUAD Buad 381 taught by Professor Proctor during the Spring '10 term at Morgan.

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accounting cheat sheet - Liquidity Ratios Current ratio =...

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