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D104 WGU
Financial Ratios
| Formula Name | Answer |
|---|---|
| Asset Turnover Ratio | Net Sales/ Average Total Assets |
| Profit Margin Ratio | Net Income/ Total Sales |
| Rate of Return on Assets | Net Income/ Average Total Assets |
| Current Ratio | Current Assets/ Current Liabilities |
| Acid-Test Ratio or Quick Ratio | Cash + Short-term Investments + Net Receivables/ Current Liabilities |
| Rate of Return on Common Stock Equity or Return on Equity | Net Income- Preferred Dividends/ Average Common Stockholders Equity |
| Payout Ratio | Cash Dividends/ Net Income - Preferred Dividends |
| Book Value Per Share | Common Stockholders Equity/ Outstanding Shares |
| Times Earned Interest | Net Income + Interest Expense + Income Tax Expense/ Interest Expense |
| Debt-to-Asset Ratio | Total Liabilities/ Total Assets |
| Debt-to-Equity Ratio | Total Liabilities/ Equity |