Financial Ratios and Accounting Formulas: Profitability, Liquidity and Asset Management

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Finance - Personal Finance

andrsonztdc Created by 10 mon ago

Cards in this deck(26)

The accounting equation is represented as _____ = Liabilities + Owner's Equity.

The formula for Return on Assets is _____ / average total assets.

The Debt Ratio is calculated as average liabilities / _____ assets.

Straight-Line Depreciation is calculated using the formula: (cost - salvage value) / _____ life.

Profit Margin is determined by dividing net income by _____ sales.

The Current Ratio is calculated as current assets divided by current _____.

The Quick/Acid-Test Ratio is quick assets divided by current _____.

Inventory Turnover is calculated as cost of goods sold divided by average _____.

Average Inventory is calculated as (Beginning Inventory + Ending Inventory) / _____.

Days' Sales in Inventory is calculated as (Ending Inventory / Cost of Goods Sold) x _____.

Days' Sales Uncollected is calculated as (Accounts Receivable / Net Sales) x _____.

Accounts Receivable Turnover is calculated as Net Sales divided by Average Accounts Receivable, _____.

Total Asset Turnover is calculated as Net Sales divided by Average Total _____.

The Debt-to-Equity Ratio is calculated as total liabilities divided by total _____.

Earnings per Share is calculated as (net income - preferred dividends) / weighted average common shares _____.

Price-Earnings Ratio is calculated as market value per share divided by earnings per _____.

Dividend Yield is calculated as annual cash dividends per share divided by market value per _____.

Cash Flow on Total Assets is calculated as operating cash flows divided by average total _____.

In Comparative Statements, Dollar Change is calculated as Analysis period amount - _____ period amount.

In Comparative Statements, Percent Change is calculated as (analysis period amount - base period amount) / Base period amount x _____.

Trend Analysis is calculated as (Analysis period amount / Base period amount) x _____.

Vertical Analysis: Common-size percent is calculated as (Analysis amount / base amount) x _____.

Working Capital is calculated as Current assets minus current _____.

Times Interest Earned is calculated as Income before interest expense and income taxes divided by Interest _____.

Gross Margin is calculated as (Net sales - COGS) divided by Net _____.

Return on Equity is calculated as Net income divided by Average total _____.

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