Financial Ratios

U.S. GAAP Codification IFRS International Standards U.S. Tax Code

Accounting Ratios
for Financial Statement Analysis

U.S. GAAP Codification U.S. Tax Code by Section Securities Law Library
Financial Accounting Intermediate Accounting Advanced Accounting
ASC Accounting Standards IFRS International Standards


 
Liquidity Analysis Ratios   
   
Current Ratio
    Current Assets
  Current Ratio = ------------------------
    Current Liabilities
      
Quick Ratio
    Quick Assets
 
Quick Ratio =
----------------------
    Current Liabilities
     
Quick Assets = Current Assets - Inventories
   
Net Working Capital Ratio
    Net Working Capital
 
Net Working Capital Ratio =
--------------------------
    Total Assets
     
Net Working Capital = Current Assets - Current Liabilities
   
 
Profitability Analysis Ratios   

Return on Assets (ROA)
    Net Income
 
Return on Assets (ROA) =
----------------------------------
    Average Total Assets
     
Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2
   
Return on Equity (ROE)
    Net Income
 
Return on Equity (ROE) =
--------------------------------------------
    Average Stockholders' Equity
     
Average Stockholders' Equity 
= (Beginning Stockholders' Equity + Ending Stockholders' Equity) / 2
   
Return on Common Equity (ROCE)
    Net Income
 
Return on Common Equity =
--------------------------------------------
    Average Common Stockholders' Equity
     
Average Common Stockholders' Equity 
= (Beginning Common Stockholders' Equity + Ending Common Stockholders' Equity) / 2
   
Profit Margin
    Net Income
 
Profit Margin =
-----------------
    Sales
     
     
Earnings Per Share (EPS)
    Net Income
 
Earnings Per Share =
---------------------------------------------
    Number of Common Shares Outstanding
     
   
 
Activity Analysis Ratios   

Assets Turnover Ratio
    Sales
 
Assets Turnover Ratio =
----------------------------
    Average Total Assets
     
Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2
   
Accounts Receivable Turnover Ratio
    Sales
 
Accounts Receivable Turnover Ratio =
-----------------------------------
    Average Accounts Receivable
     
Average Accounts Receivable 
= (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
   
Inventory Turnover Ratio
    Cost of Goods Sold
 
Inventory Turnover Ratio =
---------------------------
    Average Inventories
     
Average Inventories = (Beginning Inventories + Ending Inventories) / 2
   

 

Capital Structure Analysis Ratios   

Debt to Equity Ratio
    Total Liabilities
 
Debt to Equity Ratio =
----------------------------------
    Total Stockholders' Equity
     
     
Interest Coverage Ratio
    Income Before Interest and Income Tax Expenses
 
Interest Coverage Ratio =
-------------------------------------------------------
    Interest Expense
     
Income Before Interest and Income Tax Expenses 
= Income Before Income Taxes + Interest Expense
   

Capital Market Analysis Ratios   

Price Earnings (PE) Ratio
    Market Price of Common Stock Per Share
 
Price Earnings Ratio =
------------------------------------------------------
    Earnings Per Share
     
     
Market to Book Ratio
    Market Price of Common Stock Per Share
 
Market to Book Ratio =
-------------------------------------------------------
    Book Value of Equity Per Common Share
     
Book Value of Equity Per Common Share 
= Book Value of Equity for Common Stock / Number of Common Shares
   
Dividend Yield
    Annual Dividends Per Common Share
 
Dividend Yield =
------------------------------------------------
    Market Price of Common Stock Per Share
     
Book Value of Equity Per Common Share 
= Book Value of Equity for Common Stock / Number of Common Shares
   
Dividend Payout Ratio
    Cash Dividends
 
Dividend Payout Ratio =
--------------------
    Net Income
     
     
 
ROA = Profit Margin X Assets Turnover Ratio   

ROA = Profit Margin X Assets Turnover Ratio
   
Net Income
Net Income
Sales
 
ROA =
------------------------  =
--------------  X
------------------------
   
Average Total Assets 
Sales
Average Total Assets 
       
Profit Margin = Net Income / Sales 
Assets Turnover Ratio = Sales / Averages Total Assets


50 Questions on
   Accounting Journal Entries
   2012 Edition for iPhone and iPad
Create your own eBooks
   from iPhone and iPad
   (for iBooks and Kindle)




U.S. GAAP by Topic
International Financial Reporting Standards (IFRS)
 
Accounting Topics
Inventory Valuation Methods
Depreciation Methods
Revenue Recognition Principle
Accrual Basis vs. Cash Basis Accounting
Basics of Journal Entries
Ratios for Financial Statement Analysis
Overview of Financial Statements






Accounting Topics
 
Generally Accepted Accounting Principles, GAAP
  
Notes Receivable, Imputation of Interest
Accounting for Inventories
Inventory Valuation Methods: FIFO, LIFO
Inventory Valuation: Lower of Cost or Market
Depreciation Methods: Straight line method, Double-declining balance method
  
Investments in Debt and Equity Securities
Investments: Equity Method
Derivatives and Hedging, Fair Value Hedge, Cash Flow Hedge, Foreign Currency Hedge
Property, Plant and Equipment
Capitalization of Interest Costs
  
Accounting for Leases: Operating Lease, Capital Lease
Impairment of Assets
Intangible Assets
Goodwill
Impairment of Goodwill
  
Contingent Liabilities
Accounting for Bonds Payable
Accounting for Pension and Other Postretirement Benefits
  
Treasury Stock
Dividend, Stock Dividend, Stock Split
Revenue Recognition, Multiple-Element Revenue Arrangements
Share-based Payment, Stock Compensation
  
Income Statement
Comprehensive Income
Earnings per Share: Basic EPS, Diluted EPS
Statement of Financial Position, Balance Sheet
Statement of Cash Flows: Operating Activities, Investing Activities, Financing Activities
  
Financial Statement Analysis, Financial Ratios
Securities and Exchange Commission (SEC) Forms
Present Value, Future Value






Codification Topics at the 100 Level 
 
Topic 105: Generally Accepted Accounting Principles


Codification Topics at the 200 Level 
 
Topic 205: Presentation of Financial Statements
 
Topic 210: Balance Sheet
Topic 215: Statement of Shareholder Equity
 
Topic 220: Comprehensive Income
Topic 225: Income Statement
 
Topic 230: Statement of Cash Flows
Topic 235: Notes to Financial Statements
 
Topic 250: Accounting Changes and Error Corrections
Topic 255: Changing Prices
 
Topic 260: Earnings per Share
 
Topic 270: Interim Reporting
Topic 272: Limited Liability Entities
Topic 274: Personal Financial Statements
Topic 275: Risks and Uncertainties
 
Topic 280: Segment Reporting


Codification Topics at the 300 Level 
 
Topic 305: Cash and Cash Equivalents
 
Topic 310: Receivables
 
Topic 320: Investments-Debt and Equity Securities
Topic 320-10-35: Transfers of Securities: Between Categories
 
Topic 323: Investments-Equity Method and Joint Ventures
Topic 325: Investments-Other
 
Topic 330: Inventory
 
Topic 340: Other Assets and Deferred Costs
Topic 350: Intangibles-Goodwill and Other
 
Topic 360: Property, Plant, and Equipment


Codification Topics at the 400 Level 
 
Topic 405: Liabilities
 
Topic 410: Asset Retirement and Environmental Obligations
Topic 420: Exit or Disposal Cost Obligations
 
Topic 430: Deferred Revenue
 
Topic 440: Commitments
Topic 450: Contingencies
Topic 460: Guarantees
 
Topic 470: Debt
 
Topic 480: Distinguishing Liabilities from Equity

 

U.S. GAAP Codification of Accounting Standards
 
Accounting Standards Codification, ASC, Overview
ASC Codification 100: General Principles
ASC Codification 200: Presentation
ASC Codification 300: Assets
ASC Codification 400: Liabilities
ASC Codification 500: Equity
ASC Codification 600: Revenue
ASC Codification 700: Expenses
ASC Codification 800: Broad Transactions
ASC Codification 900: Industry



Copyright CPAClass.com.TM  All Rights Reserved.