Ratio Formulas Flashcards by Jessica Takimoto

Q

Return on Sales (ROS)

A

Net Income / Sales Revenue

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Q

Return on Equity (ROE)

A

Net Income / Owner’s Equity

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Q

Earnings per Share (EPS)

A

Net Income / # Shares Outstanding

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Q

Market Capitalization (Market Cap)

A

Share Value • # Shares Outstanding

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Q

Total Debt to Asset (D/A)

A

Total Liabilities / Total Assets

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Q

Long-Term Debt/Equity (LTD/E)

A

Long Term Debt / Total Equity

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Q

Current Ratio

A

Current Assets / Current Liabilities

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Q

Quick Ratio (acid test)

A

(Cash + Accounts Receivable) / Current Liabilities

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Q

Working Capital

A

Current Assets - Current Liabilities

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