Operating margin = operating profit / sales Return on beginning equity = net income / equity @ beginning of year Asset turnover

= sales / assets Inventory turnover = COGS / inventory Days in inventory = ending inventory / (COGS/365) Current ratio = current assets / current liabilities Quick ratio = (cash + marketable securities + receivables) / current liabilities Debt ratio = (current portion LTD + revolving credit, bank & long-term debt) / (all of the above + equity) Times interest earned = EBIT / interest Fixed to variable cost = fixed costs / variable costs Common-size income statement = income statement / sales Gross margin = gross profit / sales Net margin = net income / sales EBIT = operating profit = earnings before interest and tax ROA = return on assets = EBIT*(1 tax rate) / (average total assets) ROIC = return on invested capital = EBIT*(1 tax rate) / (interest-bearing debt + equity) Pretax ROIC = EBIT / Interest-bearing debt + equity Net working capital turnover = sales / average net working capital Fixed assets turnover = sales / net PP&E Collection period in days = average receivables / (sales/365) Receivables turnover = sales / average receivables Days sales in cash = (cash + securities) / (sales/365) Payables period in days = accounts payable / (credit purchases/365) Cash ratio = (cash + short-term securities) / current liabilities Interval measure = (cash + marketable securities + receivables) / (operating costs/365) Debt ratio = interest-bearing debt + leases / all of the above + equity Debt to equity ratio = interest-bearing debt / equity Equity to asset ratio = equity / total assets Fixed to variable costs = (SG&A + depreciation sales commissions) / (COGS depreciation) Sales to fixed costs = sales / (SG&A + depreciation sales commissions) Contribution margin = (revenue variable costs) / sales