|
Financial Ratios by CPAclass.com |
| U.S. GAAP Codification | Accounting Topics |
|
Accounting Ratios for Financial Statement Analysis |
| U.S. GAAP Codification, Accounting by Topic, Accounting Terms |
| Financial Accounting, Intermediate Accounting, Advanced Accounting |
| 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 |
|
Codification Topics at the 100 Level |
| Topic 105: Generally Accepted Accounting Principles |
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