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Liquid/SolvencRatios
Accounting Liquidity and Solvency Ratios
Term | Definition |
---|---|
Current Ratio | Current Assets / Current Liabilities |
Acid Test Ratio | Cash + Short term investments + current receivables / current liabilities |
Accounts Receivable Turnover | Net Sales / Average Accounts Receivable |
Inventory Turnover | Cost of goods sold / average inventory |
Days sales uncollected | (Average Accounts Receivable / Net Sales) x 365 |
Days Sales In Inventory | (Ending Inventory / Cost of goods sold) x 365 |
Total Asset Turnover | Net Sales / Average Total Assets |
Debt Ratio | Total Liabilities / Total Liabilities & Equity |
Equity Ratio | Total Equity / Total Liabilities & Equity |
Debt to Equity Ratio | Total Liabilities / Total Equity |
Times Interest Earned | Income Before Interest & Taxes / Interest Expense |
Profit Margin | Operating Income / Net Sales |
Price to Earnings Ratio | Market Price Per Common Share / Earnings per share |
Dividend Yield | Annual Cash Dividends per share / Market price per share |
Earnings Per Share | Net Income / average common shares |
Gross Profit Percent | (Net Sales - Cost of goods sold) / Net Sales |
Return on Equity | Net Income/ Average Shareholder's Equity |
Return on Assets | Net Income/ Average Total Assets |
Equity Multiplier | Total Assets / Shareholder's Equity |