Chapter 16 Formulas

Chapter 16 Formulas - Average common stockholders' equity =...

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Chapter 16 Formulas Price-earnings ratio = Market price per share Earnings per share Gross margin percentage = Gross margin Sales Earnings per share = (Net income - Preferred dividends) Average number of common shares outstanding Price-earnings ratio = Market price per share Earnings per share Number of common shares outstanding = Common stock Par value per share Dividend payout ratio = Dividends per share Earnings per share Dividend yield = Dividends per share Market price per share Book value per share = Common stockholders’ equity/ Number of common shares outstanding Return on total assets = {Net income + [Interest expense (1 - Tax rate)]} Average total assets Return on stockholder equity = {Net income + [Interest expense (1 - Tax rate)]} Average stockholders’ equity Return on common stockholders' equity = (Net income - Preferred dividends) Average common stockholders' equity
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Unformatted text preview: Average common stockholders' equity = Average total stockholders' equity - Average preferred stockholders' equity Working Capital = Current assets - Current liabilities Current ratio = Current assets Current liabilities Acid-test ratio = (Cash + Marketable securities + Accounts receivable + Short-term notes receivable) Current liabilities Accounts receivable turnover = Sales on account Average accounts receivable balance Average collection period = 365 days Accounts receivable turnover Accounts receivable turnover = Sales on account Average accounts receivable balance Inventory turnover = Cost of goods sold Average inventory Average sale period = 365 days Inventory turnover Times interest earned = (Earnings before interest expense and income taxes) Interest expense Debt-to-equity ratio = Total liabilities Stockholders' equity...
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