Financial Ratios
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profitability ratios
 ability of firm to earn adequate returns:
 profit margin
 return on assests
 return on equity

asset utilization ratios
 speed at which firm is turning over; how many times per year a firm sells inventory or collects a/r; fixed assets generating sales:
 recievable turnover
 inventory turnover
 fixed asset turnover
 total asset turnover
 average collection period

liquidity ratios
 firms ability to payoff short term obligations:
 current ratio
 quick ratio

debt utilization ratio
 debt position of firm evaluated in terms of its asset base and earning power.
 debt to total assets
 times interest earned
 fixed charge coverage

du pont system of analysis
return on total assets through rofit margin and asset turnover

recievables turnover
Sales (credit) / recievables

inventory turnover
sales / inventory

fixed asset turnover
sales / fixed assets

total assets turnover
sales / total assets

average collection period
accounts recievable / average daily credit sales

current ratio
current assets / current liabilities

quick ratio
current assets  inventory / current liabilities

debt to total assets
total debt / total assets

times interest earned
income before interest and taxes / interest

fixed charge coverage
income before fixed charges and coverage / fixed charges