Financial Ratios

profitability ratios
- ability of firm to earn adequate returns:
- profit margin
- return on assests
- return on equity
asset utilization ratios
- speed at which firm is turning over; how many times per year a firm sells inventory or collects a/r; fixed assets generating sales:
- recievable turnover
- inventory turnover
- fixed asset turnover
- total asset turnover
- average collection period
liquidity ratios
- firms ability to pay-off short term obligations:
- current ratio
- quick ratio
debt utilization ratio
- debt position of firm evaluated in terms of its asset base and earning power.
- debt to total assets
- times interest earned
- fixed charge coverage
du pont system of analysis

return on total assets through rofit margin and asset turnover
recievables turnover

Sales (credit) / recievables
inventory turnover

sales / inventory
fixed asset turnover

sales / fixed assets
total assets turnover

sales / total assets
average collection period

accounts recievable / average daily credit sales
current ratio

current assets / current liabilities
quick ratio

current assets - inventory / current liabilities
debt to total assets

total debt / total assets
times interest earned

income before interest and taxes / interest
fixed charge coverage

income before fixed charges and coverage / fixed charges

Author

akoskey

66855

Card Set

Financial Ratios

Description

finance

Updated

2011-02-17T00:24:03Z

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