ACG 2071 Common Financial Ratios
Liquidity Ratios - ANS-Working Capital, Current Ratio, Quick Ratio
Working Capital - ANS-Current Assets - Current Liabilities
Current Ratio - ANS-Current Assets / Current Liabilities
Quick Ratio - ANS-(Cash + Short Term Investments + Net Receivables)
/ Current Liabilities
Profitability Ratios: - ANS-Return on Sales
Return on Total Assets
Return on Equity
Earnings Per Share
Return on Sales - ANS-Net Income / Net Sales
Return on Total Assets - ANS-Net Income + Interest Expense / AVERAGE Total Assets
Return on Equity - ANS-(Net Income - Preferred Dividends Declared)
/AVERAGE Common Stockholder's Equity
Earnings per share - ANS-(Net Income - Preferred Dividends)
/ Average NUMBER of Common Shares Outstanding
Liquidity Ratios - ANS-Working Capital, Current Ratio, Quick Ratio
Working Capital - ANS-Current Assets - Current Liabilities
Current Ratio - ANS-Current Assets / Current Liabilities
Quick Ratio - ANS-(Cash + Short Term Investments + Net Receivables)
/ Current Liabilities
Profitability Ratios: - ANS-Return on Sales
Return on Total Assets
Return on Equity
Earnings Per Share
Return on Sales - ANS-Net Income / Net Sales
Return on Total Assets - ANS-Net Income + Interest Expense / AVERAGE Total Assets
Return on Equity - ANS-(Net Income - Preferred Dividends Declared)
/AVERAGE Common Stockholder's Equity
Earnings per share - ANS-(Net Income - Preferred Dividends)
/ Average NUMBER of Common Shares Outstanding