Formula Sheet - Selected Financial Ratios Liquidity Current ratio Current assets Current liabilities Current assets Inventories Current liabilities

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

View Full Document Right Arrow Icon
Liquidity s liabilitie Current assets Current ratio Current = s liabilitie Current s Inventorie assets Current ratio test) (Acid Quick - = Asset Management 365 sales/ credit Annual receivable Accounts period collection Average = inventory Average sales of Cost turnover Inventory = assets fixed Net Sales turnover asset Fixed = - assets Total Sales turnover asset Total = Leverage assets Total debt Total ratio Debt = equity rs' Stockholde debt Total ratio equity to Debt = - - charges Interest (EBIT) taxes and interest before Earnings earned interest Times = fund sinking tax Before tax before dividends Preferred payments Lease Interest payments Lease EBIT coverage charge Fixed + + + + = Holding Period Return P C t P P K t t t t 1 1 - - + - = Profitability Sales sales of Cost Sales margin profit Gross - = The textbook defines the bottom line on the income statements as Earnings after Taxes (EAT) . It is more commonly known as Net Income (NI) Sales NI margin profit Net = assets Total NI (ROI) investment on Return = ROI is also known as Return on Assets (ROA) equity rs' Stockholde NI (ROE) equity rs stockholde on Return = Market-Based share per value Book share per price Market P/B ratio book to Market = = share per earnings Current share per price Market P/E
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 04/07/2008 for the course FIN 3113 taught by Professor Titus-piersma during the Spring '08 term at Oklahoma State.

Page1 / 5

Formula Sheet - Selected Financial Ratios Liquidity Current ratio Current assets Current liabilities Current assets Inventories Current liabilities

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