FINA 3000 Chapter Notes - Chapter 1: Shares Outstanding, Retained Earnings, Net Income
Document Summary
Current assets= accounts receivable + cash + inventory. Current liabilities= notes payable + accounts payable. Total assets turnover= net sales/ total assets. Fixed asset turnover= net sales/ net fixed assets. Days sales outstanding= average accounts receivable/ average daily sales. Gross profit= gross profit margin x sales. Days held in inventory= inventory/ average daily cogs. Net income= net profit margin x sales. Operating profit= operating profit margin x sales. Increase in net income= net profit margin x increase in sales. Earnings per share= earnings or net income/ # of shares outstanding. Increase in earnings per share= increase in earnings/ # of shares outstanding. Operating profit= gross profit- selling and administrative depreciation and amortization. Gross profit margin= gross profit/ net sales. Net profit margin= net income/ net sales. Total debt ratio= total debt/ total assets. Ebit- interest= earnings before taxes taxes= net income. Dividends= net income x dividend payout ratio. Dividends per share= dividends/ # of shares.
