Accounting Equations
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How do you measure the Quality of Earnings Ratio?
What does this measure?
 Net Cash provided by Operating Expenses
 Net Income

How do you find the Profit Margin Ratio?

What measures the percentage of each dollar of sales that results in net income?
What does the profit margin ratio measure?

How do you determine the Gross Profit Rate?

What does the gross profit rate measure?
What uses a percentage to measure the gross profit?

How do you measure Free Cash Flow?
What does this measure?
Cash provided by operations  Capital expenditures  Cash dividends

How do you caculate debt to asset ratio?
What does this measure?
 Total Liabilities
 Total Assets

How do you measure debt to assets?
What measures the percentage of total financing provided by creditors instead of stockholders equity?

How do you find working capital?
What does this formula show?
Current Assets  Current Liablities

What is the Current Ratio formula?
What formula is this?
 Current Assets
 Current Liabilities

What does the current ratio masure?
What ratio is the more predictable measurement of liquidity?

What is the Earnings per Share formula?
What is this formula?
 Net Income  Preferred Stock Dividends
 Average Common Shares Outstanding

How do you calculate the days merchandise is in inventory?
What does this formula calculate?

What is the formula for turnover ratio?

What measures the number of times the inventory cycles through?
What does the inventory turnover ratio measure?