NUMBER OF DAYS OF PAYABLE = ACCOUNT PAYABLE/AVG DAYS PURCHASE

365/ACCOUNT PAYABLE TURNOVER

LEVERAGE RATIO - RISK – BUSINESS RISK AND FINANCIAL RISK

BUSINESS RISK- SALES RISK OPERATING RISK

DEBT TO ASSET RATIO = TOTAL DEBT/TOTAL ASSETS

LONG TERM DEBT TO ASSETS RATIO = LONG TERM ASSETS/TOTAL ASSETS

DEBT TO EQUITY RATIO= TOTAL DEBT/TOTAL SHAREHOLDER EQUITY

FINANCIAL LEVERAGE=TOTAL ASSETS/TOTAL SHAREHOLDER EQUITY

INTEREST COVERAGE RATIO= EBIT/INTEREST PAYMENT

FIXED CHARGE COVERAGE RATIO= EBIT+LEASE PAYMENT/INTEREST PAYMENT+LEASE PAYMENT

CASH FLOW COVERAGE RATIO= CFO+INTEREST PAYMENT+TAX PAYMENT/INTEREST PAYMENT

CASH FLOW TO DEBT RATIO= CFO /TOTAL DEBT

PROFITABILITY RATIO

(1) GROSS PROFIT MARGIN= GROSS PROFIT/SALE*100

(2) NET PROFIT MARGIN= PAT/SALE*100
(3) RETURN ON CAPITAL EMPLOYEED= NET PROFIT/CAPITAL EMPLOYEED
(4) RETURN ON EQUITY= PAT/NET WORTH
(5) ROI= PAT/TOTAL ASSET OR EBIT(1-TAX RATE)/TOTAL ASSETS
(6) EPS= PAT/SHARE OUTSTANDING
(7) DPS= DIVIDEND/SHARE OUTSTANDING
(8) PAYOUT RATIO= DPS/EPS
(9) PRICE EARNING RATIO= MARKET VALUE PER SHARE/EPS
(10)MB RATIO= MV/BOOK VALUE
(11)TABIN’S Q= MV OF ASSET/REPLACEMENT COST
(12)DUPOND RATIO= PROFIT/SALE*SALE/ASSET*ASSET/EQUITY