FAR > FAR Chapter 2 Ratios > Flashcards

FAR Chapter 2 Ratios Flashcards

(11 cards)

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1
Q

ROE

A

Net Income/Average shareholders equity

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2
Q

ROI

A

Net Income/Average Invested Capital

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3
Q

ROA

A

Net Income/ Average total assets

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4
Q

DuPont ROE

A

Net profit margin X Asset Turnover X Financial Leverage(Assets/Equity)

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5
Q

Current Ratio

A

Current Assets/Current Liabilities

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6
Q

Quick (acid test) ratio

A

Cash plus AR/current liabilities

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7
Q

Cash ratio

A

Cash plus marketable securities /current liabilities

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8
Q

Total Debt

A

Total debt/Total assets

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9
Q

Debt to total capital

A

Total debt/Total Capital

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10
Q

Debt to equity

A

Total debt/Total Equity

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11
Q

Times interest earned

A

Ebit/interest expense

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FAR
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