| Question |
Answer |
| What is the Ratio for Net Worth |
Total Assets - Total Liabilities |
| NAV - Net Asset Value per share |
Total Assets - Total Liabilities / Number of shares of common stock issued |
| What is a good measurement ratio of how far the stock is underpinned by assets |
NAV = Net Asset Value per share |
| Current Ratio |
Current Assets / Current Liabilities (used to check solvency on a short term basis) |
| What ratio is used to check solvency on a short term basis? |
Current Ratio |
| Quick Ratio or Acid Test |
Liquid Assets/ Curren Liabilities |
| What ratio s used to check solvency on an immediate basis |
Quick Ratio / Acid Test |
| Debt to Equity Ratio |
Long Term Debt / Shareholders Equity |
| What ratio is used to determine whether a company has over extended its debt |
Debt to Equity Ratio |
| Return on Assets (ROA) |
Operating Profits (before interest or tax) / Assets - Current Liabilities |
| What ratio compares the operating profit earned by a company with the capital used to genrate it |
Return on Assets (ROA) |
| (ROE)Return on Equity |
Operating Profit / Shareholders Equity |
| Operating Profit Margin Ratio |
Operating Proft (before interest & taxes / Turnover (gross revenue from sales) |
| What ratio is used to show the operating profit as a percentage of turnover i.e. sales |
OPerating Profit Margin Ratio |
| Money Markets |
- Are Short Term Investment Securities of less than 1 year.- very safe- low returns because they are safe- ious issued by Goverments and Large Corporations- commercial paper/ repos / CDs- Very Liquid- do not trade of the trading floors- securities trade i |
| Commercial Paper |
short term loans issued by corporations in order to avoid the banks high interest rates |
| Current Yield or Redemption Yield |
Percentage recevied annually returned to the investors (Coupon / Price) * (100/1) |
500 Words
