Ratio Analysis

4. ______ Asset Turnover:The amount of sales generated by each dollar of assets-- higher is better
5. ______ Ratio:value of extremely liquid asset available to cover short term
6. _________ Age of Inventory: how many days goods stay in stock before being sold
10. ability to satisfy short-term debt
11. ______ Profit Margin percentage of sales dollars left after good purchases-- higher means more stable company-- for every dollar how much is left expenses.
12. ________ Turnover: how many times during the year the company reorders
14. ______ Profit Margin:percentage of sales dollar left after goods are purchase and operating expenses paid--higher means more stable.
17. Return on _____: how much money the firm earned from each dollar of shareholder investment-- higher the number means more stable.
18. _______ to Book: How much investors are willing to pay for stock than the amount listed in the balance sheet-- if the ratio is above 1 then the stock is undervalued; if it is less than 1, the stock is overvalued.
19. _______ Ratio: speed with which various accounts are converted into sales or cash
20. _______ Ratios: degree of indebtedness and the ability of the firm to pay debt.--lower better

1. _____ per Earnings: a high P/E suggest that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. A low P/E can indicate either that a company may currently be undervalued or that the company is doing exceptionally well relative to it’s past trends
2. Average ________ Period: Number of days it takes companies to collect from customers--the the lower the number the quicker you get cash.
3. ______ per Share: number of dollars earned on behalf of each shareholder-- higher is better
7. _____ on total Assets- how much money the firm earned for each dollar of asset investment-- higher the number means more stable.
8. ______ Interest Earned-- How many times a year the company makes enough income to pay interest expenses-- less than one means they cannot pay interest
9. _____ Ratio: value of liquid assets available to cover short term debt-- higher the better
13. _____ analysis: quantitative analysis of information contained in a company's financial statements. Ratio analysis is used to evaluate various aspects of a company's operating and management of assets.
15. Accounts __________ Turnover: how quickly cash credit sales are converted to cash
16. ___ Profit: Margin percentage of sales dollars left after all expenses are deducted--higher means more stable company