Formulas

1) Working Capital Current Assets – Current Liabilities

OR Current Assets
2) Current Ratio Current Ratio = Current Assets: Current Liabilities Current Liabilities
3) Liquid Ratio / Liquid Ratio = Liquid Assets: Current Liabilities OR Current Assets–Inventory
Quick Assets ratio Current Liabilities
Total Liabilities
4) Debt Ratio Debt Ratio = X 100
Total Equities
Total Shareholders’ Equity
5) Equity Ratio Equity Ratio = X 100
Total Equities
6) Proprietary Ratio Total Shareholders’ Equity
Proprietary Ratio =
Total Tangible Assets

7) Gross Profit Ratio Gross Profit Ratio =

Gross Profit
X 100
Net Sales
8) Net Profit Ratio Net Profit Ratio =
Net Profit
X 100
Net Sales
9) Operating Profit Operating Profit Ratio =
Operating Profit
X 100
Ratio Net Sales
10) Operating Ratio Operating Ratio =
Cost of Goods Sold + Operating Expenses
X 100
Net Sales
11) Capital Turnover Capital Turnover Ratio =
Net Sales
X 100
Ratio Shareholders Equity + Long Term Debt
12) Fixed Assets Fixed Assets Turnover Ratio =
Net Sales
X 100
Turnover Ratio Total Fixed Assets
13) Assets Turnover Average Assets =
Opening Assets + Ending Assets
Ratio 2
Total Revenue
Assets Turnover Ratio = Average Assets

14) Inventory (Stock) Inventory Turnover Ratio (time) =

Cost of Goods Sold
Turnover Ratio Average Inventory
Opening Inventory + Closing Inventory
Average Inventory =
2
365 days .
Inventory Turnover Ratio (days) =
Inventory turnover in times
15) Receivables Net Credit Sales .
(Debtors) Receivables Turnover Ratio (time) = Average Accounts Receivables
Turnover Ratio
Opening Receivables + Ending Receivables
Average Receivables =
2
365 days .
Receivables Turnover Ratio (days) =
Receivables turnover in times
16) Payables Payable Turnover Ratio (time) =
Net Purchased on Credit
(Creditors) Average Accounts Payables
Turnover Ratio
Opening A/c Payables + Ending A/c Payables
Average Payables =
2
365 days .
Payable Turnover Ratio (days) = Payables turnover in times

17) Book Value Per Total Shareholders’ Equity

Book Value Per share = Numbers of shares outstanding
Share
18) Interest Coverage Interest Coverage Ratio =
Operating Income
Ratio Interest Expenses
19) Leverage Ratio Leverage Ratio =
Total Assets
Total Shareholders Equities
20) Return on Equity Average Equity =
Opening Shareholders Equity + Ending Shareholders Equity
2
Net Income
Return on Equity = X 100
Average Shareholders’ Equity
21) Earnings Per Share Earnings Per share =
Net Income after tax
Numbers of shares outstanding
22) Earnings ratio Net Income .
Earnings Ratio = Market Price per share X 100

23) Price / Earnings Market Price Per Share

Price / Earnings Ratio =
Ratio Earnings Per Share

24) Dividends per

share

25) Dividend Yield

26) Dividend cover

27) Dividend Pay-out Dividend per common shares

Dividend pay-out Ratio = X 100
Ratio Earnings per share
28) Operating Cycle Inventory Turnover in days + Receivables turnover in day