Cheat Sheet on Accounting Ratios and Formulas, Cheat Sheet of Financial Accounting

Download Cheat Sheet on Accounting Ratios and Formulas and more Cheat Sheet Financial Accounting in PDF only on Docsity! Accounting  Ratios  Cheat  Sheet                 Adam  Brown,  CPA   RATIO   FORMULA   PURPOSE  OR  USE   I.LIQUIDITY   1.  Current  ratio     2. Quick  or  acid-­‐test   ratio     3. Current  cash  debt   coverage     II.  Activity   4. Accounts  receivable   turnover     5. Inventory  turnover     6. Asset  turnover     III.  Profitability   7. Profit  margin  on  sales       8. Return  on  assets     9. Return  on  common   stock  equity       10. Earnings  per  share         11. Price-­‐earnings  ratio       12. Payout  ratio     IV.  Coverage   13. Debt  to  assets       14. Times  interest  earned       15. Cash  debt  coverage       16. Book  value  per  share         17. Free  cash  flow           Current  assets/current  liabilities     Cash,  short-­‐term  investments,  and  net   receivables/current  liabilities     Net  cash  provided  by  operating   activities/Average  current  liabilities           Net  sales/Average  trade  receivables   (net)     Cost  of  goods  sold/Average  inventory     Net  sales/Average  total  assets         Net  income/Net  sales       Net  income/  Average  total  assets     Net  income  minus  preferred   dividends/Average  common   stockholders’  equity     Net  income  minus  preferred   dividends/Weighted-­‐average  number  of   shares  outstanding     Market  prince  of  stock/Earnings  per   share     Cash  dividends/Net  income         Total  liabilities/Total  assets       Income  before  income  taxes  and  interest   expense/Interest  expense     Net  cash  provided  by  operating   activities/Average  total  liabilities       Common  stockholding   equality/Outstanding  shares       Net  cash  provided  by  operating  activities   –  Capital  expenditure  -­‐  Dividends     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