Financial Ratios

Fall term ended about a week ago but I still have trouble getting the ratios I learned in Financial Measurement, Analysis, and Reporting out of my head. Now with the holiday season in full swing, I can’t help but apply these ratios throughout my two-week break, which is usually filled with family time, sports, and holiday meals.

Quick Ratio – How quickly until the Dallas Cowboys lose another game = days between football games / games remaining

Interest Coverage Ratio – Apparently the basketball lockout has ended so this ratio = games on TV / games I’m interested in watching. This is undefined since the denominator typically equals zero

Payout Ratio I hope this ratio is high = total gifts received / family members + friends

Price to Book – Price to book a flight. Assumption: this does not include baggage fees.

Capitalization Ratio– Emails sent to during holiday season / emails where I bothered capitalizing the first letter of every sentence

PE Ratio – Pizzas Eaten Ratio = tota lpizzas eaten / average number of vacation days, which usually leads to the next ratio.

EPS – Extra Pounds to Shed

ROA - Rhubarb Or Apple pie ratio. I think the denominator is usually higher.

ROE - Resting Or Exercising ratio. This ratio is very high and = total hours resting / total hours exercising

ROIC – Relief Of Incessant Commercials – please stop any commercial that involves people receiving cars with a big bow on top.

Retained Earnings – after the holiday season I expect this to be zero

EBIT – Evenings Before I Travel measures the time until I start the next term at Tuck.