Earnings based Ratios

Liquidity Ratio:

Current Ratio= Current Assets / Current Liabilities

Quick Ratio= (Current Assets – Inventory) / Current Liabilities

Asset Management Ratio:

Fixed Assets Turnover= Turnover / Net Fixed Assets

Total Assets Turnover= Turnover / Total Assets

Debt Management Ratio:

Debt to Assets= Total Debt / Total Assets

Interest Coverage= EBIT / Interest

Profitability Ratio:

Return on Sales= Net Income / Turnover

Return on Assets= Net Income / Total Assets

Return on Equity= Net Income / Shareholders' Equity

Return on Capital Employed= Earnings / Equity and Long Term Debt

 Cash Flow Based Ratios
Liquidity Ratio:

Cash to Short Term Debt = CFFO / Short Term Debt

Critical Needs Coverage = (CFFO + Interest paid) / (Interest paid + Current Debt + Dividend)

Asset Management Ratio:

Cash to Fixed Assets = CFFO / Fixed Assets

Reinvestment = CFFO / Capital Invested

Debt Management Ratio:

Cash to Debt = CFFO / Total Debt

Cash Interest Coverage= CFFO / Interest Paid

Profitability Ratio:

Cash to Sales= CFFO / Turnover

Cash to Assets= CFFO / Total Assets

Cash to Equity= CFFO / Shareholders' Equity

Cash to Equity Employed= CFFO / Equity and Long Term Debt

*** Repayment of Borrowing = Past LTL -Present LTL

*** Capital Investment = Past LTA - Present LTA

*** CFFO = Cash Flow from Operation

*** Capital Invested = Acquisition of PPE, Building, Land etc.

*** Repayment of Borrowing = Long term Loan paid