#Financial Accounting Standards Board (FASB) Standard No. 52-- mandates that US-based companies translate their foreign-currency denominated assets and liabilities into dollars, for consolidation with the parent company's financial statements. This is done by using the current rate (translation) method. #Current rate (translation) method-- technique used by US-based companies to translate their foreign-currency denominated assets and liabilities into dollars, for consolidation with the parent company's financial statements, using the year end (current) exchange. #Rate ratio analysis-- involves methods of calculating and interpreting financial ratios to analyze and monitor the firm's performance. #Cross sectional analysis-- comparison of different firms financial ratios at the same point in time; involves comparing the firm's ratios to those of other firms in the same industry or to industry averages. #Benchmarking-- a type of cross-sectional analysis in which the firm's ratio now use are compared to those of a key competitor or group of competitors that it wishes to emulate. #Timeseries analysis-- evaluation of the firm's financial performance over time using financial ratio analysis. #Liquidity-- a firm's ability to satisfy its short-term obligations as they come due. #Current ratio-- a measure of liquidity calculated by dividing the firm's current assets by its current. #Liabilities quick (acid test) ratio-- a measure of liquidity calculated by dividing the firm's current assets minus inventory by its current liabilities. #Activity ratios-- measure the speed with which various accounts are converted into sales or cash, inflows or outflows. #Inventory turnover -- measures the activity, or liquidity, of a firm's inventory average age of inventory-- average number of days sales in inventory. #Average collection period-- the average of amount of time needed to collect accounts receivable. #Average payment period-- the average amount of time needed to pay accounts payable. #Total asset turnover -- indicates the efficiency with which the firm uses its assets to generate sales. #Financial leverage-- the magnification of risk and return introduced through the use of fixed cost financing, such as debt and preferred. #Stock degree of indebtedness-- measures the amount of debt relative to other significant balance sheet amounts ability to service debt-- the ability of a firm to make the payments required on a scheduled basis over the life of a debt. #Coverage ratios-- ratios that measure the firm's ability to pay certain fixed charges. #Debt ratio-- measures the proportion of total assets financed by the firm's creditors. #Times interest earned ratio-- measures the firm's ability to make contractual interest payments; sometimes called the interest coverage ratio. #Fixed payment coverage ratio-- measures the firms ability to meet all fixed payment obligations.