Financial Ratios

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1. Accounts Cost of goods sold/Accounts payable 24. Price earnings Market price per share/earnings per share
payable (PE) ratio
turnover
25. profit margin net income available to common
2. Accounts Credit Sales/Accounts receivable stockholders/sales
Receivable
26. Quick ratio Current Assets - Inventory/Current liabilities
Turnover
(acid test ratio)
3. Average Accounts Receivable x 365/credit sales or
27. Retention Addition to Retained Earnings/Net income
collection 365/Accounts receivable turnover
Ratio available to common stockholders
period (ACP)
28. Retention ratio 1 - Dividend payout ratio
4. Average Accounts payable x 365/Cost of goods
Payment period sold or 365 days/Accounts payable 29. Return on Net income available to common
(APP) turnover Assets (ROA) stockholders/total assets

5. Basic earnings EBIT (earnings before income tax)/Total 30. Return on Net income available to common
power (BEP) assets Equity (ROE) stockholders/Common stockholders equity

6. Capital intensity Total assets/sales 31. Sales to Sales/Working capital(current assets -

working current liabilities)
7. Cash coverage EBIT(earnings before income tax) +
capital
Depreciation/Fixed charges
32. Sustainable ROE x RR/1 - (ROE x RR)
8. Cash Ratio Cash & marketable securities/current
Growth Rate
liabilities
33. Times interest EBIT(earnings before income tax)/interest
9. Current Ratio Current Assets/Current Liabilities
earned
10. Days' sales in Inventory x 365/Sales or costs of goods
34. Total asset Sales/Total assets
inventory sold or 365/inventory turnover
turnover
11. Debt Ratio Total debt/total assets
12. Debt to equity Total debt/total equity
13. Dividend Common stock dividends/Net income
payout available to common stockholders
14. DuPont ROA Profit margin x total asset turnover
15. DuPont ROE ROA x Equity multiplier or Profit margin x
Total asset Turnover x Equity multiplier
16. equity total assets/total equity or total
multiplier assets/common stockholders' equity
17. Fixed Asset Sales/Net fixed assets
Turnover
18. Fixed charge Earnings available to meet fixed
coverage charges/fixed charges
19. Gross Profit Sales - Cost of goods sold/sales
Margin
20. Internal growth ROA x RR/ 1 - (ROA x RR)
rate
21. Inventory Sales or Cost of goods sold/inventory
Turnover
22. Market to book Market price per share/Book value per
ratio share
23. operating profit EBIT(earnings before income tax)/Sales
margin