LIQUIDITY RATIOS C.

Debt to Equity Ratio

A. Current Ratio Debt to Total Liability

Equity
Total Current Assets
Ratio
Current Ratio Total Shareholder’s Equity
Total Current Liabilities

D. Times Interest Earned Ratio

B. Quick Ratio
Times Earnings before Interest and
Current Assets - Inventories Tax (EBIT)
Interest
Quick Ratio
Earned
Total Current Liabilities Ratio Interest Expense

C. Cash Ratio E. Cash Coverage Ratio

Cash + Marketable Securities
Cash Ratio Cash EBIT + Depreciation
Total Current Liabilities Coverage
Ratio Interest Expense

D. Working Capital to Total Asset Ratio

ACTIVITY RATIOS
Working
Capital to Current Assets - Current Liabilities
Total A. Asset Turnover Ratio
Asset
Ratio Total Assets
Asset Sales Revenue
Turnover
Ratio
Average Assets

LEVERAGE RATIOS B. Accounts Receivable Turnover Ratio

A. Debt Ratio Accounts

Total Liability Receivable Credit Sales
Debt Ratio Turnover
Ratio Average Accounts Receivable
Total Asset

B. Equity Ratio C. Days’ Sales Receivable

Equity Total Shareholder’s Equity Days’ Sales Average Receivables*

Ratio Receivable
Average Daily Sales**
Total Asset

* Beginning AR + Ending AR / 2
** Sales Revenue / 360

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D. Inventory Turnover Ratio ● ARP - Average Receivable Period or
Average Collection Period
Inventory Cost of Sales Average Receivables
Turnover ARP
Ratio Average Inventory Average Daily Sales

E. Days’ Sales Inventory ● APP - Average Payable Period

Average Accounts Payable
Days’ Sales Average Inventory* APP
Inventory
Average Daily Sales** Average Daily Purchases

* Beginning Inv. + Ending Inv. / 2

** Cost of Sales / 360
PROFITABILITY RATIO
F. Accounts Payable Turnover Ratio
AS TO MARGINS
1. Gross Profit Margin (GPM)
Accounts
Payable Purchases* Gross Profit
Turnover GPM
Ratio Accounts Payable Net Sales

* Cost of Goods Sold + Ending Inventory -

Beginning Inventory 2. Operating Profit Margin (OPM)
Operating Profit
G. Days’ Payable Outstanding
OPM

Days’ Sales Average Accounts Payable* Net Sales

Outstanding
Average Daily Purchases**
3. Net Profit Margin (NPM)
* Beginning AP + Ending AP / 2 Net Income After Tax
** Purchases / 360 NPM
Net Sales
H. Normal Operating Cycle

Cash AS TO RETURNS
Conversion AIP + ARP - APP
1. Return on Sales (ROS)
Cycle
Net Income
ROS
● AIP - Average Inventory Period Net Sales
Average Inventory
AIP
2. Return on Assets (ROA)
Average Daily Cost of Sales
Net Income
ROA
Average Assets

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3. Return on Equity (ROE)
Gross Profit
GPM
Net Sales

AS TO SHAREHOLDER’S INTEREST
1. Earnings Per Share (EPS)
Net Income - Preferred Stocks
EPS
Number of Outstanding Common
Stocks

2. Price-Earnings Ratio (PER)

Net Income - Preferred Stocks
PER
Number of Outstanding Common
Stocks

3. Dividend Yield (DY)

Dividend Per Share
DY
Market Price per Share

4. Pay-Out Ratio (POR)

Dividends per Share
POR
Earnings per Share

5. Plow Back Ratio (PBR)

Earnings per Share - Dividends per
PBR Share

Earnings per Share

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