Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Textbook Question
Chapter 13, Problem 13.2KTQ
Quiz 2:
Solvency
Debt-to-equity ratio
Times interest earned ratio
Debt service coverage ratio
Cash flow from operations to capital expenditures ratio
Profitability
Return on assets ratio
Return on sales ratio
Asset turnover ratio
Return on common stockholders’ equity ratio
Leverage
Earnings per share (EPS)
Price/earnings (P/E) ratio
Dividend payout ratio
Dividend yield ratio
- A measure of a company’s success in earning a return for the common stockholders.
- The relationship between a company’s performance according to the income statement and its performance in the stock market.
- The ability of a company to remain in business over the long term.
- A variation of the profit margin ratio; measures earnings before payments to creditors.
- A company’s bottom line stated on a per-share basis.
- The percentage of earnings paid out as dividends.
- The ratio of total liabilities to total stockholders’ equity.
- A measure of the ability of a company to finance long-term asset acquisitions with cash from operations.
- A measure of a company’s success in earning a return for all providers of capital.
- The relationship between net sales and average total assets.
- The relationship between dividends and the market price of a company’s stock.
- The use of borrowed funds and amounts contributed by preferred stockholders to earn an overall return higher than the cost of these funds.
- An income statement measure of the ability of a company to meet its interest payments.
- A statement of cash flows measure of the ability of a company to meet its interest and principal payments.
- How well management is using company resources to earn a return on the funds invested by various groups.
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