Accounting 102 Online- Ch 14 Ratios

Trend percentage = (any year $/base year $) 100

Vertical Analysis % = (each income statement item/revenues (net sales)) 100
Working Capital = Current assets Current liabilities
Current ratio = Current assets/Current liabilities
Acid-Test (Quick) Ratio = (Cash + Short-term investments + Net current
receivables)/Current liabilities
Inventory Turnover = Cost of goods sold/Average inventory
Average Days Inventory on Hand = 365/Inventory turnover
Accounts Receivable Turnover = Net credit sales/Average net accounts receivable
Days Sales in Accounts Receivable = Average net accounts receivable/One
days sales
One days sales = Net sales/365 days
Debt Ratio = Total liabilities/Total assets
Times-Interest-Earned Ratio = Income from operations/Interest expense
Rate of Return on Net Sales = Net income/Net sales
Rate of Return on Total Assets = (Net income + Interest expense)/Average total assets
Rate of Return on Common Stockholders Equity = (Net income Preferred
dividends)/Average common stockholders equity
Earnings per Share of Common Stock = (Net income Preferred dividends)/Number of
shares of common stock outstanding

Outstanding stock = Issued stock Treasury stock

Price/Earnings Ratio = Market price per share of common stock/Earnings per share
Dividend Yield = Annual Dividend per share of common (or preferred) stock/Market
price per share of common (or preferred) stock
Book Value per Share of Common Stock = (Total stockholders equity Preferred
equity)/Number of share of common stock outstanding