Selected Ratios and Definitions Current Ratio= Current Assets / Current Liabilities; Quick Ratio= (Current Assets - Inventory) / Current Liabilities; Debt-to-Asset Ratio= Total Debt / Total Assets; Debt-to-Equity= Total Debt / Total Equity; Equity Multiplier= Total Assets / Total Equity; Times Interest Earned =EBIT / Interest Payment; Inventory Turnover = COGS / Inventory; or, Sales/Average Inventory if COGS data is not available; Average Age of Inventory = 365 / Inventory Turnover = 365 / (Sales / Inventory);Receivables Turnover= Annual Sales / Accounts Receivables; Average Collection Period = 365 / Receivables Turnover = 365 / (Sales / Accounts Receivables); Total Assets Turnover= Sales / Total Assets; NetProfit Margin= Net Income / Sales; ROA= Net Income / Total Assets = total asset turnover * net profit margin; ROE= Net Income / Equity = ROA * Equity Multiplier = ROA * Total Assets / Equity; ROE= total asset turnover * net profit margin * equity multiplier; EPS= Net Income / Number of Common Shares Outstanding; P/E Ratio= Market Price per Share / EPS; Market-to-Book Ratio
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This note was uploaded on 04/06/2012 for the course FIN 3014 taught by Professor Dalhquist during the Spring '12 term at University of Texas at Austin.