FINANCIAL RATIOS

A. Liquidity Ratios

CR = CA / CL

QR = (CA – Invn) / CL

B. Asset Management Ratios

ICP = Invn / COGS per day Avg Invn, Sales per day, ITR = COGS / Invn

RCP = Recbl / Sales per day DSO, ACP, Avg Recbl, RTR = Sales / Recv

PDP = Paybl / COGS per day Avg Paybl, Purchases per day

COGS = Cost of Material Consumed

+ Purchase of Traded Goods

FATR = Sales / NFA Avg FA

TATR = Sales / TA Avg TA

C. Debt Management Ratios

DER = TD / SE LTD, Avg TD, TL, TE, DR = TD / TA

TIE = EBIT / I Also ICR

D. Profitability Ratios

NPM = NP / Sales GPM= GP / Sales, OPM = OP / Sales

EPS = NP / No. of ES No. of ES = ESC / FV of ES

ROA = NP / TA Avg TA

ROE = NP / SE Also RONW

EVA = NOPAT – (NOC * WACC) NP – (ESC * Cost of EQ)

E. Market Value Ratios

P/E = MP / EPS Trailing EPS, Forward EPS

P/B = MP / BV M/B

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Sales = Total Income Revenue from Operations