Horizontal Analysis
Peso Change = Current Year Figure - Base Year Figure
Vertical Analysis
Trend Percentages
FINANCIAL RATIOS
1) Liquidity Ratios
a. Current Ratio
b. Quick (Acid-test) Ratio
c. Cash Ratio
2) Financial Leverage
a. Total Debt Ratio
b. Debt to Equity Ratio
c. Times Interest Earned
d. Fixed Charge Coverage
e. Cash Coverage Ratio
Equity Multiplier
3) Asset Management
a. Accounts Receivable Turnover
b. Average Collection Period
c. Inventory Turnover
Day's Sales/Supply in Inv. or Ave. Sales Period
d. Average Sale Period
e. Fixed Asset Turnover
f. Total Asset Turnover
Current year - Base year / Base year x 100
Percentage Change = (Peso Change / Base Year Figure) x 100
(Specific Line Item / Base Figure) x 100
(Current Year Amount / Base Year Amount) x 100
Current Assets / Current Liabilities
(Current Assets - Inventory) / Current Liabilities
Cash / Current Liabilities
(Total Liabilities / Total Assets) (times)
(Total Liabilities / Total Equity) (times)
Operating Profit / Interest Expense EBIT / Interest Expense (times)
(Operating Profit + Lease Payments) / (Interest Expense + Lease Payments)
(EBIT + Depreciation) / Interest Expense
Total Assets / Total Equity (1+Debt equity ratio)
Net Sales or Credit Sales / Average Accounts Receivable Balance
365 days / Accounts Receivable Turnover or Average Accounts Receivable / Average Daily Sales
Cost of Goods Sold / Average Inventory Balance
365 / Inventory Turnover
365 days / Inventory Turnover
Net Sales / Average PPE
Net Sales / Average Total Assets
 Capital Intensity Ratio 1 / Total Assets Turnover
g. Receivables Turnover Average Account Receivable / 2
Day's Sales in Receivables. or Ave. Collection Period 365 / Receivables Turnover
h. Payables Turnover Cost of Good sold / Average Accounts Payable
Days' Cost in Payables or Ave.Payment Period 365 / Payables Turnover

4) Operating Efficiency and Profitability

a. Gross Profit Margin (Gross Profit / Net Sales) x 100
b. Operating Profit Margin (Operating Profit / Net Sales) x 100
c. Net Profit Margin (Net Income / Net Sales) x 100
d. Cash Flow Margin (Cash Flow from Operating Activities / Net Sales) x 100
Return on Assets Net Income / Total Average Assets or Assets Turnover x Net Profit Margin
Return on Equity Net Income / Average Ordinary Equity
Net Working Capital Current Assets - Current Liabilities

Market Value Measures

Earnings per share Net Income / Outstanding shares
PE Ratio Price per Share / Earnings per Share
Price/Sales Ratio PPS / Sales per share
Market to book Ratio PPS / Book Value per Share
Enterpise Value Total Market Val. of stock + Book Value of all Liab - Cash
EBITDA Ratio Enterprise Value / EBITDA
EBITDA Ratio EBIT + Depreciation & Amortization

Internal and Sustainable Growth and Retention Ratios

Dividend Payout Ratio Dividends per share / Earnings per share or Cash Dividends / Net Income
Dividend Yield Dividents per share / Market Value per share
Dividend per share Dividends paid or declared / Ordinary shares outstanding
Retention Ratio Addition to Retained Earnings / Net Income
Internal Growth Rate ROA x b
1 - ROA x b
 Sustainable Growth Rate
DUPONT IDENTITY
Return on Equity
CASH FLOW ANALYSIS
Cash flow from Assets (CFFA)
Cash flow from Assets (CFFA)
Cash Flow to Creditors (CFC)
Cash Flow to Stockholders (CFS)
Operating Cash Flow
Net Capital Spending
Net Working Capital
A232 ROXY
ROE x b
1 - ROE x b
Profit Margin x Total Asssets Turnover x Equity Multiplier
(Net Income / Sales) ( Sales / Total Assets) (Total Assets / Total Equity)
Operating Cash Flow
- Net Capital Spending
- Changes in NWC INCOME STATEMENT
Cash flow to Creditors (CF/CR) Net Sales
+Cash Flow to Stockholders (CF/SH) Cost of Goods Sold
Interest Paid - Net new borrowings Depreciation
Dividends paid - Newt new equity EBIT
Less: Interest Paid
EBIT + depreciation - taxes Taxable Income
Less: Taxes
Ending net FA - beginning net FA + depreciation Net Income
Ending NWC - Behinning NWC