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    Ratios For Accounting Summary

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    myzevel
    This document discusses several financial ratios used in accounting including current ratio, receivables turnover, times interest earned, debt-to-equity ratio, and price-to-earnings (P/E) ratio. The current ratio measures a company's ability to pay short-term debts with its current assets. Receivables turnover measures how efficiently a company collects its accounts receivable from customers. Times interest earned measures a company's ability to cover its interest payments. The debt-to-equity ratio compares amount of debt to amount of shareholders' equity. The P/E ratio compares a company's stock price to its earnings per share.

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    Ratios For Accounting Summary

    Uploaded by

    myzevel
    9 views2 pages
    This document discusses several financial ratios used in accounting including current ratio, receivables turnover, times interest earned, debt-to-equity ratio, and price-to-earnings (P/E) ratio. The current ratio measures a company's ability to pay short-term debts with its current assets. Receivables turnover measures how efficiently a company collects its accounts receivable from customers. Times interest earned measures a company's ability to cover its interest payments. The debt-to-equity ratio compares amount of debt to amount of shareholders' equity. The P/E ratio compares a company's stock price to its earnings per share.

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    Ratios for Accounting Summary

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    This document discusses several financial ratios used in accounting including current ratio, receivables turnover, times interest earned, debt-to-equity ratio, and price-to-earnings (P/E) ratio. The current ratio measures a company's ability to pay short-term debts with its current assets. Receivables turnover measures how efficiently a company collects its accounts receivable from customers. Times interest earned measures a company's ability to cover its interest payments. The debt-to-equity ratio compares amount of debt to amount of shareholders' equity. The P/E ratio compares a company's stock price to its earnings per share.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    9 views2 pages

    Ratios For Accounting Summary

    Uploaded by

    myzevel
    This document discusses several financial ratios used in accounting including current ratio, receivables turnover, times interest earned, debt-to-equity ratio, and price-to-earnings (P/E) ratio. The current ratio measures a company's ability to pay short-term debts with its current assets. Receivables turnover measures how efficiently a company collects its accounts receivable from customers. Times interest earned measures a company's ability to cover its interest payments. The debt-to-equity ratio compares amount of debt to amount of shareholders' equity. The P/E ratio compares a company's stock price to its earnings per share.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
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    Other Ratios for Accounting – Summary

    *If there are preferred dividends, the amount is subtracted from net income.

    Receiv =Net Credit Sales


    ableAverage Net Receivables
    Current = Current Assets Turnov
    Ratio Current Liabilities er

    Times = Net+ +Interest


    Intere Income Tax
    st Income
    Earne Expense
    d Expense Debt-to- = Total Liabilities
    Interest Equity Stockholders’ Equity
    Expense Ratio
    P/E Ratio =
    Current Market Price Per Share
    Earnings Per Share

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