Summary of Ratios Ratio Formula Measure of Liquidity and Efficiency Current assets Current ratio Short-term debt-paying abilicy Current labilities Cash + Short-torm investments Current recerables Acid-test ratio Immediate short-cerm debt-paying ability Curront liabilitics Net sales Accounts recelvable turnover Efficiency of collection Avorage accounts rocolvable, net Cost of goods sold Inventory turnover Efficiency of invontory management Average inventory Accounts rocolvable, not Days' salos uncollected Liquidicy of receivables x 365 Net sales Ending invontory Cost of goods sold Days' sales In inventory Liquidity of inventory x 365 Net sales Total asset turnover Efficiency of assets in producing sales Avorago total assets Solvency Total liabilitios Total assots Croditor financing and leverage Debt ratio Total oquity Owner financing Equity ratio Total assots lotal labilitios Dobt vorsus oquity financing Debt-to-oquity ratio Total oquity Income before Interest oxpense and Income taxes Interest expense Procoction in moetins interest paymonts Times interost carned Profitability Net Income Not inconmo in oach salos dollar Profit margin ratio Not sales Cost of goods sold Net sales Net salos Gross margin in cach salos dollar Gross margin ratio Noc income Overall profitabilicy of assots Roturn on total assots Average total assets Proforred dividends Not Incomne Average common stockholders equity Profitabilicy of owner Invostmont Roturn on common stockholders" equity Sharoholders.oquity aPplicablo to common shares Number of common shares outstanding Preferred dividends Book value per common share Net income Net income per common share Basic earnings per share Market Prospects Market price per common share Earnings per share Markoc value rolative to oarnings Price-oarnings ratio Annual cash dividends per share Cash retum per common share Dividend yield Market price por share © McGraw-Hill Educa ng Objective P3: Define and apply ratio analysis. atement analysis ratios illustrated in this chapter and throughout the book. This summary includes each ratio's title, its formula, and t

Summary of Ratios Ratio Formula Measure of Liquidity and Efficiency Current assets Current ratio Short-term debt-paying abilicy Current labilities Cash + Short-torm investments Current recerables Acid-test ratio Immediate short-cerm debt-paying ability Curront liabilitics Net sales Accounts recelvable turnover Efficiency of collection Avorage accounts rocolvable, net Cost of goods sold Inventory turnover Efficiency of invontory management Average inventory Accounts rocolvable, not Days' salos uncollected Liquidicy of receivables x 365 Net sales Ending invontory Cost of goods sold Days' sales In inventory Liquidity of inventory x 365 Net sales Total asset turnover Efficiency of assets in producing sales Avorago total assets Solvency Total liabilitios Total assots Croditor financing and leverage Debt ratio Total oquity Owner financing Equity ratio Total assots lotal labilitios Dobt vorsus oquity financing Debt-to-oquity ratio Total oquity Income before Interest oxpense and Income taxes Interest expense Procoction in moetins interest paymonts Times interost carned Profitability Net Income Not inconmo in oach salos dollar Profit margin ratio Not sales Cost of goods sold Net sales Net salos Gross margin in cach salos dollar Gross margin ratio Noc income Overall profitabilicy of assots Roturn on total assots Average total assets Proforred dividends Not Incomne Average common stockholders equity Profitabilicy of owner Invostmont Roturn on common stockholders" equity Sharoholders.oquity aPplicablo to common shares Number of common shares outstanding Preferred dividends Book value per common share Net income Net income per common share Basic earnings per share Market Prospects Market price per common share Earnings per share Markoc value rolative to oarnings Price-oarnings ratio Annual cash dividends per share Cash retum per common share Dividend yield Market price por share © McGraw-Hill Educa ng Objective P3: Define and apply ratio analysis. atement analysis ratios illustrated in this chapter and throughout the book. This summary includes each ratio's title, its formula, and t

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5MC: Calculate the projected debt ratio, debt-to-equity ratio, liabilities-to-assets ratio,...

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