Demonstrate the impact of COGS on financial statements.
EBITDA is an acronym for:
Earning Before Interest, Tax, Depreciation, and Amortization
EBIDTA Percentage to Sales
EBITDA / Sales Revenue
* Expressed as a percentage
A drop in EBIDTA to Sales signifies:
The business is becoming less efficient
Interest Coverage Ratio
EBITDA / Interest Expense
Net Profit Margin
Net Income / Sales Revenue
* Expressed as a percentage
Return on Equity
Net Income / Average Shareholder's Equity
* Expressed as a percentage
Asset Turnover
Sales Revenue / Average Total Assets
Current Ratio
Current Assets / Current Liabilities
Quick Ratio
(Cash + Short Term Investments + Accounts Receivable) / Current Liabilities
Debt-to-Equity Ratio
Total Liabilities / Total Shareholder's Equity
Days-Sales-Outstanding
(Average Accounts Receivable / Net Credit Sales) x 365
Accounts Receivable Turnover
Net Credit Sales / Average Accounts Receivable
Inventory Days on Hand
(Average Inventory / COGS) x 365
Inventory Turnover
COGS / Average Inventory
Book Value per Share
(Shareholder's Equity - Preferred Equity) / Average Number of Common Shares Outstanding
Dividend Payout Ratio
Dividends Paid in a Year / Net Income after Tax
* Expressed as a percentage
Earning Per Share
(Net Income - Preferred Dividends) / Average Number of Common Shares Outstanding
Price-Earnings Ratio (P/E Ratio)
Market Price / Earnings per Share
Horizontal Analysis
Used to quickly compare the changes, both in dollars and percentages, in a given financial statement from one period to the next.
Vertical Analysis
Expresses individual accuonts in the same period as a percentage of another. For example, vertical analysis of the income statement indicates each account as a percentage of net sales