Analysis of Financial Statements - Ratios
Across
- 4. a ratio that shows the relationship of a firm’s cash and other current assets to its current liabilities
- 8. a set of ratios that measure how effectively a firm is managing its asset
- 9. the ratio of total debt, which usually is the sum of notes payable
- 11. measures the turnover of all the firm’s assets; it is calculated by dividing sales by total assets
- 13. are a group of ratios, which show the combined effects of liquidity, asset management, and debt on operations
- 14. relate the firm’s stock price to its earnings and book value per share
Down
- 1. determined by dividing earnings before interest and taxes by the interest charge
- 2. measures how effectively the firm uses its plant and equipment
- 3. ratio is simply the market price per share divided by the book value per share
- 5. also known as 'acid test' is found by taking current assets less inventories and then dividing by current liabilities
- 6. the total debt divided by the total common equity
- 7. found by dividing current assets by current liabilities
- 10. measure the use of debt financing
- 12. similar to the times-interest-earned ratio, but it recognizes that many firms lease assets and also must make sinking fund payment