1. Liquidity ratios Current ratio Acid test ratio Interest coverage rat iv. Inventory turnover r v. Account receivable ratio vi vi Account payable ratio Asset turnover ratio “Acid test ratio: “Current ratio Current Assets - Inventory Jaci Test ratio = Current ratio = CA/ CL Current Liability Income batore interest taxes, txes| Income before terest and T3¥05 | |coerage of eee ncerest coverage= ica payment iret panes tres paymens CoveravE GT ome before nares & axes a Principle payment Principal Interest payments + Atel payment Inventory tumover= FIFO) LIFO GostofGoods Sold old = new ‘Average Inventory new. ‘old 365 Inventory Turnover In Days = =~ ry YS = “Thventory tumover . Net Credit Sales Account Receivable Turnover =———_— Average Receivable . A 365 Receivable Turnover in Days = $5 Receivable Turnover Account Payable Turnover - 006S Average Payable 7 365 Payable Tumover in Days = oe Tarnover Sales Total asset turnover = a Total Assets2. Debt Ratios (Cont) Debt Ratio Debt-to-Equity Ratio Times Interest Earned R iv. Fixed Payment Coverage Ratio DEBT ramio = SC ievenaae rane'= TOTAL ASSET TOTAL EQUITIES ing Beto sears Tota tres Expense “Fixed Payment Coverage Ratio Eamings Before intrest and Tax. ayments Interest Lease Payments | Paina : ments» Prefrese Stack Dvisends)>| 3. Profitability ratios Gross profit margin ii. Operating profit margin il, Net prof margin (ROS) iv. Eamings per share (EPS) v. Return on assets (ROA) vi. Return on equities (ROE) Gross operating prof yy Gross Profitmargin. = a Operating profit marg Operating profit, Sales Earning available for common stockholders NPM= Sales Eps— —Eatning available for common stockholders " Number of shares of common stocks outstanding Earning available for common stockholders ROA = Total Assets nor = Earning available for common stockholders Total Equities