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21 Cards in this Set

  • Front
  • Back
CURRENT RATIO
CURRENT ASSETS/CURRENT LIABILITIES
DEBT RATIO
TOTAL LIABILITIES/TOTAL ASSETS
TOTAL ASSET TURNOVER
SALES/TOTAL ASSETS
NET PROFIT MARGIN
NET INCOME/SALES
EPS
NET INCOME / (#C/S Shares Outstanding)
P/E
Price per share/EPS
"HOW MUCH $ ARE INVESTORS WILLING TO SPEND FOR EVERY $1 EARNED?"
Average Collection Period
(A/R)/(sales/365)
Quick/Acid Test
(cash+short term securities+net a/r)/current liabilities

excludes inventory and some current assets that may not be very liquid
A/P Deferral
(A/P)/(COGS/365)
Inventory Conv Period
Inventory/(COGS/365)
Times Interest Earned
EBIT/Interest Expense
Operating Return on Assets
EBIT/Total Assets
Return On Equity
Net Income/Total Equity
Market to Book/Equity
Market Cap/Common Equity
"HOW MUCH $ HAVE OWNERS EARNED FOR SHAREHOLDERS INVESTMENT?"
LIQUIDITY
Current, Quick/Acid, ACP, ICP
Funds to meet short term needs/pay current liabilities
"How liquid is the firm?"
liquid = pays bills on time

highly liquid assets tend to create minimal return (ie cash)
CASH CONVERSION CYCLE
Inv Conv Period
+ACP
-A/P Deferral
CAPITAL STRUCTURE RATIOS
Debt
TIE
ASSET MANAGEMENT
Total Asset Turnover
"Are assets generating adequate sales?"
PROFITABILITY
Gross PM
OPM
Net PM
"Has the firm earned adequate returns on investments?"
MKT VALUE
P/E
Market to book
MARKET CAP/MARKET VAL OF EQUITY
Price Per Share * #shares outstanding