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Current Assets/ Current Liab
- Measures short-term debt paying ability
Current Assets - Current Liab
Current Cash Debt Coverage
$ provided by operations/ Avg. Current Liab
- Measures short-term debt paying ability on cash basis
Receivables Turnover Ratio
Net credit sales/ avg. gross receivables
- Measure liquidity of reciev.s
Average Collection Period
365/ Receivables Turnover Ration
- Measures liquidity of receivables and collection success
Inventory Turnover Ratio
CGS/ Avg. Inventory
- Measures liquidity of inventory
- High number wanted
Days in Inventory
365/ Inventory Turnover Ratio
Debt to total asset ration
Total assets/ Total liab.
- Percent of total assets provided by creditors
Times interest earned ratio
(income before interest exp + income taxes) / interest exp
- Measure ability to meet interest payments as they come due
Cash debt coverage ratio
$ provided by ops. / Total Liabs.
- Long-term debt paying ability on cash basis
Free cash flow
$ provided by ops. - (capital expenditures + dividends paid from $)
- Cash available for paying divs or expanding operations
Return on common SHE ratio
(net income - preferred stock divs) - avg. common SHE
- Prof. of common stockholders' investments
Return on Assets Ratio
Net income/ avg. total assets
- overall prof of assets
Profit Margin Ratio
Net income/ Net sales
- Net income generated by each dollar of sales
Asset Turnover Ratio
Net sales/ Avg. total assets
- How efficiently assets are used to generate sales
Gross Profit Ratio
Gross Profit/ Net Sales
- Margin between selling price and CGS
Earnings Per Share (EPS)
(Net income - Preferred stock divs.) / Avg. # of common shares outstanding
- Net income earned on each share of common stock
Market price per share/ EPS
- Relationship between market price per share and EPS
Cash divs declared on common stock/ net income
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