Accounting)Ratios)Cheat)Sheet) ) ) ) ) ) ) ) AdamBrown,)CPA)

Accounting Ratios Cheat Sheet

RATIO

FORMULA

I.LIQUIDITY

1.

Current ratio

Current assets/current liabilities

2. Quick or acid--test ratio

Cash, short--term investments, and net receivables/current liabilities

3. Current cash debt coverage

II. Activity 4. Accounts receivable turnover

Net cash provided by operating activities/Average current liabilities

Net sales/Average trade receivables (net)

5. Inventory turnover Cost of goods sold/Average inventory

6. Asset turnover

Net sales/Average total assets

III. Profitability 7. Profit margin on sales

8. Return on assets

Net income/Net sales

Net income/ Average total assets

9. Return on common stock equity

Net income minus preferred dividends/Average common stockholders' equity

10. Earnings per share Net income minus preferred

dividends/Weighted--average number of

shares outstanding

11. Price--earnings ratio

12. Payout ratio

Market prince of stock/Earnings per share

Cash dividends/Net income

IV. Coverage

13. Debt to assets

Total liabilities/Total assets

14. Times interest earned Income before income taxes and interest

expense/Interest expense

15. Cash debt coverage

Net cash provided by operating activities/Average total liabilities

16. Book value per share Common stockholding

equality/Outstanding shares

17. Free cash flow

Net cash provided by operating activities ? Capital expenditure -- Dividends

Adam Brown, CPA

PURPOSE OR USE

Measures short--term debt--paying ability

Measures immediate short--term liquidity

Measures a company's ability to pay off its

current liabilities in a given year from its

operations

Measures liquidity of receivables

Measures liquidity of inventory

Measures how efficiently assets are used to

generate sales

Measures net income generated by each dollar of

sales

Measures overall profitability of assets

Measures profitability of owners' investment

Measures net income earned on each share of

common stock

Measures the ratio of the market price per share

to earnings per share

Measures percentage of earnings distributed in

the form of cash dividends

Measures the percentage of total assets provided

by creditors

Measures ability to meet interest payments as

they come due

Measures company's ability to repay its total in a

given year from its operations

Measures the amount each share would receive if

the company were liquidated at the amount

reported on the balance sheet

Measures the amount of discretionary cash flow

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download