POAAIFR

POAAIFR - _ _ <A>Appendix A: Commonly Used Financial...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
___________________________________________________________________________________________________________ _ <A>Appendix A: Commonly Used Financial Ratios<A> ___________________________________________________________________________________________________________ _ Financial Ratio (How Measured) Formula Interpretation ___________________________________________________________________________________________________________ _ Liquidity Ratios: Current Ratio (Decimal) Current Assets/ Current Liabilities Indicator of firm’s ability to pay its short-term liabilities Quick (Acid-Test) Ratio (Decimal) Current Assets – Inventory Measures firm’s ability to pay off short-term liabilities Current Liabilities from current assets excluding inventories Profitability Ratios: Net Profit Margin (%) Net Profits After Taxes/ Net Sales Indicates after-tax profits produced by each dollar of sales Gross Profit Margin (%) Net Sales – Cost of Sales
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/28/2011 for the course FIN 315 taught by Professor Welker during the Spring '09 term at IUP.

Page1 / 4

POAAIFR - _ _ &lt;A&gt;Appendix A: Commonly Used Financial...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online