Measure of the average number of days taken to sell the inventory one time S o

Measure of the average number of days taken to sell

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Measure of the average number of days taken to sell the inventory one time S o l v e n c Debt-to-assets ratio Total liabilities / Total assets Measure the percentage of total liabilities in terms of total assets Debt-to-equity ratio Total liabilities / Total equity Measure of the amount of assets being provided by creditors for each dollar of assets being provided by the stockholders Times interest earned Net income before interest expense and income taxes/ Interest expense Measure of the likelihood that creditors will continue to receive their interest payments P r o fi ta b il it y Return on sales (net profit margin) Net income / Net sales x 100% Measure of the percentage of each dollar of sales that results in net income Return on assets Net income + [Interest expense x (1 - Tax rate)]/ Average total assets Measure of how well assets have been employed by management Return on stockholders' equity Net income /Average common stockholders' equity When compared to the return on total assets, measures the extent to which financial leverage is being employed for or against the common stockholders Earnings per share (common stock) Net income /Number of shares outstanding Tends to have an effect on the market price per share, as reflected in the price-earnings ratio
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  • Spring '20
  • Balance Sheet, Revenue, Net Income, Net Profit Margin, Generally Accepted Accounting Principles

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