| A | B |
|---|
| benchmark | A standard used to compare financial performance. (p. 516) |
| comparative financial statements | Financial statements that provide information for multiple fiscal periods. (p. 517) |
| current ratio | A ratio that measures the relationship of current assets to current liabilities. (p. 535) |
| debt ratio | Total Liabilities divided by Total Assets. (p. 526) |
| divident yield | The relationship between dividends per share and market price per share. (p. 534) |
| earnings per share | Net income after federal income tax divided by the number of outstanding shares of stock. (p. 533) |
| gross margin | Gross profit as a percent of net sales. (p. 518) |
| horizontal analysis | A comparison of one item on a financial statement with the same item on a previous period’s financial statement. (p. 528) |
| liquidity ratio | A ratio that measures the ability of a business to pay its current financial obligations. (p. 535) |
| market ratio | A ratio that measures a corporation’s financial performance in relation to the market value of its stock. (p.533) |
| operating expense ratio | Total operating expenses as a percent of net sales. (p. 519) |
| operating margin | Income from operations as a percent of net sales. (p. 519) |
| price-earnings ratio | The relationship between the market value per share and earnings per share of a stock. (p. 534) |
| profit margin | Net income after federal income tax as a percent of net sales. (p. 517) |
| profitability ratio | A ratio that measures the ability of a business to generate income. (p. 516) |
| quick assets | Cash and other current assets that can be quickly converted into cash. (p. 535) |
| quick ratio | A ratio that measures the relationship of quick assets to current liabilities. (p. 535) |
| solvency ratio | A ratio that measures the ability of a business to pay its long-term liabilities. (p. 526) |
| trend analysis | An analysis of changes over time. (p. 517) |
| working capital | The amount of total current assets less total current liabilities.(p. 535) |
