Financial Terms Tagged with Financial Ratio

Current Ratio Indicates how well a company could pay its current liabilities with all of its current assets. Learn More...

Quick Ratio Measures a company's ability to meet its debt obligations. Learn More...

Cash Flow Liquidity Ratio Determines how successful a company can manage its short term debt. Learn More...

Average Collection Period The average number of days a company collects revenue from credit sales. Learn More...

Inventory Turnover Determines the ability of a company to sell its inventory by estimating the number of times its inventory was sold. Learn More...

Debt to Asset Ratio Measures debt in relation to assets in an attempt to gauge the amount of risk. Learn More...

Debt to Equity Ratio Relates the amount of company debt to owners equity, a basic measure of financial risk to stockholders. Learn More...

Long Term Debt To Total Capitalization Estimates investor risk by determining how much a company's total capitalization is coming from its long term debt. Learn More...

Times Interest Earned Examines a company's ability to pay the interest on its debt. Learn More...

Fixed Charge Coverage Determines the ability of a company to pay debt interest and lease payments using profits from operations. Learn More...

Cash Flow Adequacy Calculates how well a company can cover yearly long term debt payments with its cash flow. Learn More...

Financial Leverage Index Calculates how well a company is utilizing its debt. Learn More...

Accounts Receivable Turnover The number of times Accounts Receivable were collected during the year, measuring a company's ability to collect sales on credit from its customers. Learn More...

Fixed Asset Turnover Measures a company's effectiveness in generating sales revenue from investments made in the company. Learn More...

Total Asset Turnover Gauges a company's ability in generating sales revenue from all of its investments made in the company. Learn More...

Gross Profit Margin Gauges how much profit a company is extracting out of every dollar of sales. Learn More...

Operating Profit Margin Measures the efficiency of the regular company operations. Learn More...

Net Profit Margin Determines how much profit is left over after each dollar of sales. Learn More...

Cash Flow Margin The Cash Flow Margin measures how well company operations are at creating cash from sales of their products and services. Learn More...

Return on Total Assets Quantifies a company's ability to utilize acquired assets. Learn More...

Return on Equity Measures how efficient equity from stockholders have generated company earnings. Learn More...

Cash Return on Assets Shows how well a company can create cash from its investment in assets. Learn More...

Earnings per Share Measures company earnings created for each share of stock. Learn More...

Price to Earnings Ratio Provides a quick way to value a company, measuring how expensive the stock may be. Learn More...

Dividend Yield Determines how much value one share of company stock will return. Learn More...

Sales to Working Capital Estimates the ability of a company to use its cash to generate sales. Learn More...

Sales to Administrative Expenses Measures how well a company is managing its administrative expenses as compared to its sales. Learn More...

Sales to Equity Measures how well a company uses equity from its stockholders to generate sales. Learn More...

Depreciation to Fixed Assets Measures how well a company replaces its long term, or fixed assets. Learn More...

Interest Expense to Total Debt Estimates the interest rate a company is paying on its debt. Learn More...

Goodwill to Assets Determines how much goodwill the company is recording in relation to its assets. Learn More...

Tax Rate Percentage Measures how well a company can keep its tax expenses under control. Learn More...

Pretax Margin Determines the level of profitability given its present sales before taxes are considered. Learn More...

Operating Profit Percentage Determines the level of profitability of a company's operations. Learn More...

Cash to Current Assets Determines how liquid a company is by comparing its readily available cash to its current assets. Learn More...

Cash to Working Capital Calculates a company's ability to pay its short term debt using its most liquid assets, such as cash and securities. Learn More...

Cash Ratio Measures how completely a company can pay its liabilities. Learn More...

Price to Cash Flow A valuation ratio intended to estimate a company's value. Learn More...

Inventory to Sales Determines the ability of a company to manage their inventory levels. Learn More...

Inventory to Working Capital Measures the affect of a company's inventory level on its ability to operate profitably. Learn More...

Sales to Current Assets Measures a company's ability to utilize its assets to generate sales. Learn More...

Current to Total Liabilities Reviews the debt structure of a company. Learn More...

Working Capital to Debt Measures a company's ability to reduce its debt. Learn More...

Debt Ratio Measures the ability of a company to manage its short and long term debt. Learn More...

Altmans Z Score A method to estimate a bankruptcy prediction for a company. Learn More...

Capital Ratio Measures the equity and debt required to attain its long term assets. Learn More...

Retained Earnings to Stockholders Equity Calculates how aggressively a company is retaining earnings compared to total stockholders equity. Learn More...

Preferred Stock to Stockholders Equity Measures the percentage of preferred stock to all stock issued by a company, exposing the level of risk to common stockholders. Learn More...

Net Worth per Share Measures the value of the company per share if its assets were liquidated. Learn More...

Dividend Payout Ratio The Dividend Payout Ratio measures the percentage of Stock Dividends per share to the Earnings Per Share, showing how the company is paying for its dividend payout. Learn More...

Stockholders Equity Growth Rate Measures the level of additional equity added to existing company equity. Learn More...

Sales to Stock Price Estimates how company sales affects its stock price. Learn More...

Capitalization Rate Measures the rate of return of company stock. Learn More...

Gross Profit to Net Sales Gauges how much profit a company is extracting out of every dollar of sales. Learn More...

Cash Flow to Capital Expenditures Measures a company's efforts to invest in itself by acquiring long term purchases. Learn More...

Management Rate of Return Determines a company's ability to profitably use is assets. Learn More...

Depreciation to Cash Flow An efficiency measurement gauging the impact of depreciation and amortization on cash flow. Learn More...

Basic Defense Interval Measures the number of days a company can continue operating before it runs out of cash. Learn More...

Working Capital Turnover Shows how well a company can generate sales from its working capital. Learn More...

Working Capital to Total Assets Measures company ability to pay its short term financial obligations. Learn More...

Retained Earnings to Total Assets Measures how successful a company is at accumulating assets through retained earnings. Learn More...

Earnings to Total Assets Measures the productive ability of all a company's assets. Learn More...

Equity to Total Debt Calculates the ability of a company to meet all of its debt obligations. Learn More...

Cash Flow to Total Debt Estimates how quickly a company can pay off all its debt with only its cash flow. Learn More...

Current Assets to Total Debt Used as a liquidity measurement, showing how well a company can pay all its debt with all its assets. Learn More...

Stockholders Equity Measures how a company has structured itself to conduct operations over the long term. Learn More...

Break Even Point The minimum sales required for a company to meet its expenses. Learn More...

Expense Coverage Days An estimation of the number of day a company can cover its operations with its most liquid assets. Learn More...

Interest Coverage Ratio Measures how well a company can make payments on its debt. Learn More...