Liquidity ratio

1. Current ratio = 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡 ÷ 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦

2. Quick ratio = (𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡 − 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 − 𝑝𝑟𝑒𝑝𝑎𝑖𝑑 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠) ÷ 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦

3. Absolute liquid ratio = (𝑐𝑎𝑠ℎ + 𝑏𝑎𝑛𝑘 + 𝑚𝑎𝑟𝑘𝑒𝑡𝑎𝑏𝑙𝑒 𝑠𝑒𝑐𝑢𝑟𝑖𝑡𝑖𝑒𝑠) ÷ 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦

Probability ratio

1. Gross profit margin = (𝑅𝑒𝑣𝑒𝑛𝑢𝑒 − 𝐶𝑂𝐺𝑆) ÷ 𝑅𝑒𝑣𝑒𝑛𝑢𝑒

2. Operating profit margin = 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 ÷ 𝑅𝑒𝑣𝑒𝑛𝑢𝑒

3. Net profit margin = 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 ÷ 𝑅𝑒𝑣𝑒𝑛𝑢𝑒

Gearing ratio

1. Total debt to asset = 𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 ÷ 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡

2. Long term debt to asset = 𝐿𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝑑𝑒𝑏𝑡 ÷ 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡

3. Total debt to equity = 𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑏𝑡 ÷ 𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦

Activity ratio

1. AR turnover = 𝑁𝑒𝑡 𝑐𝑟𝑒𝑑𝑖𝑡 𝑠𝑎𝑙𝑒𝑠 ÷ [(𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝐴𝑅 + 𝑒𝑛𝑑𝑖𝑛𝑔 𝐴𝑅) ÷ 2]

2. Total asset turnover = 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡 ÷ [(𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝑎𝑠𝑠𝑒𝑡 + 𝑒𝑛𝑑𝑖𝑛𝑔 𝑎𝑠𝑠𝑒𝑡) ÷ 2]

3. Non-current asset turnover = 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 ÷ [(𝑛𝑒𝑡 𝑓𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡 𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝑏𝑎𝑙𝑎𝑛𝑐𝑒 −

𝑒𝑛𝑑𝑖𝑛𝑔 𝑏𝑎𝑙𝑎𝑛𝑐𝑒) ÷ 2]
4. PPE to turnover ratio = 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 ÷ 𝑃𝑃𝐸