Debt to Equity
-Total Liabilities/Stockholders' Equity
-Test of Solvency
Quality of Income
-Cash Flows from Operating Activities/Net Income
-Test of Profitability
Account Analysis
-Doing T-Accounts and keeping track of account balances
Common Size Analysis
-All as percentage of a number from the income statement all over sales
-Vertical analysis
-Each number shown as base figure of the statement
Horizontal Analysis
-"Financial statement technique that shows corresponding changes...over a period of time"
-Trend analysis
-Can do the the values that are absolute and percentage
-Dollar change=amount of item in comparison year- amount of item in base year
-Percentage cha
Gross Profit (Gross Margin)
-Net sales less cost of goods sold
Gross Profit Percentage
-(Gross Profit/Net Sales)X100
Accounts Receivable Turnover Ratio
-Net Credit Sales/Average Net Receivables
-Net Sales/Average Net Trade Receivables
-Test of Liquidity
Current Ratio
-Current Assets/Current Liabilities
-Test of Liquidity
Profit Margin
-Net Income/Net Sales Revenue
Profit Margin Percentage
-(Net Income/Net Sales Revenue)X100
-Test of Profitability