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This document lists 34 common financial ratios used to analyze the financial health and performance of a company. These ratios are used to evaluate factors such as profitability, liquidity, leverage, valuation, and operating efficiency. Some key ratios included are return on assets, return on equity, profit margin, current ratio, debt to equity, and price to earnings. Financial ratios provide important metrics for investors and managers to assess the company's financial management and outlook.

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Shatha Qamhieh
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92 views

Quizlet PDF

This document lists 34 common financial ratios used to analyze the financial health and performance of a company. These ratios are used to evaluate factors such as profitability, liquidity, leverage, valuation, and operating efficiency. Some key ratios included are return on assets, return on equity, profit margin, current ratio, debt to equity, and price to earnings. Financial ratios provide important metrics for investors and managers to assess the company's financial management and outlook.

Uploaded by

Shatha Qamhieh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Financial Ratios

Study online at quizlet.com/_3815fd

1. Accounts Cost of goods sold/Accounts payable 24. Price earnings Market price per share/earnings per share
payable (PE) ratio
turnover
25. profit margin net income available to common
2. Accounts Credit Sales/Accounts receivable stockholders/sales
Receivable
26. Quick ratio Current Assets - Inventory/Current liabilities
Turnover
(acid test ratio)
3. Average Accounts Receivable x 365/credit sales or
27. Retention Addition to Retained Earnings/Net income
collection 365/Accounts receivable turnover
Ratio available to common stockholders
period (ACP)
28. Retention ratio 1 - Dividend payout ratio
4. Average Accounts payable x 365/Cost of goods
Payment period sold or 365 days/Accounts payable 29. Return on Net income available to common
(APP) turnover Assets (ROA) stockholders/total assets

5. Basic earnings EBIT (earnings before income tax)/Total 30. Return on Net income available to common
power (BEP) assets Equity (ROE) stockholders/Common stockholders equity

6. Capital intensity Total assets/sales 31. Sales to Sales/Working capital(current assets -


working current liabilities)
7. Cash coverage EBIT(earnings before income tax) +
capital
Depreciation/Fixed charges
32. Sustainable ROE x RR/1 - (ROE x RR)
8. Cash Ratio Cash & marketable securities/current
Growth Rate
liabilities
33. Times interest EBIT(earnings before income tax)/interest
9. Current Ratio Current Assets/Current Liabilities
earned
10. Days' sales in Inventory x 365/Sales or costs of goods
34. Total asset Sales/Total assets
inventory sold or 365/inventory turnover
turnover
11. Debt Ratio Total debt/total assets
12. Debt to equity Total debt/total equity
13. Dividend Common stock dividends/Net income
payout available to common stockholders
14. DuPont ROA Profit margin x total asset turnover
15. DuPont ROE ROA x Equity multiplier or Profit margin x
Total asset Turnover x Equity multiplier
16. equity total assets/total equity or total
multiplier assets/common stockholders' equity
17. Fixed Asset Sales/Net fixed assets
Turnover
18. Fixed charge Earnings available to meet fixed
coverage charges/fixed charges
19. Gross Profit Sales - Cost of goods sold/sales
Margin
20. Internal growth ROA x RR/ 1 - (ROA x RR)
rate
21. Inventory Sales or Cost of goods sold/inventory
Turnover
22. Market to book Market price per share/Book value per
ratio share
23. operating profit EBIT(earnings before income tax)/Sales
margin

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