FORMULA

Liquidity Ratio

Current Ratio = current assets ÷ current liabilities

Quick Ratio = (current assets - inventory) ÷ current liabilities
Cash Ratio = (cash + cash equivalents) ÷ current liabilities
Working Capital = current assets - current liabilities

Activity Ratio Formula

Total Asset Turnover Ratio = Revenue ÷ Average Total Assets

Fixed Asset Turnover Ratio = Revenue ÷ Average Fixed Assets
Working Capital Turnover Ratio = Revenue ÷ Average Working Capital

Leverage Ratios Formula

Debt-to-Assets Ratio = Total Debt ÷ Total Assets

Debt-to-Equity Ratio = Total Debt ÷ Total Equity
Times Interest Earned Ratio = EBIT ÷ interest expense
* Earnings Before Interest Taxes (EBIT)  referred as operating income or
income from operations

Profitability Ratio

Gross Profit Margin = Gross Profit ÷ Sales

Operating Profit Margin = Operating Profit
÷ Sales
Net Profit Margin = Net Income ÷ Sales
Return on Assets (ROA) = Net income ÷
Assets
Return on Equity (ROE)  = Net Income ÷
Total Equity
Market Ratio

Earnings Per Share (EPS) = (Net Income – Dividend to Preferred

Shareholders) ÷ Average Outstanding Shares

Book Value per Share = (Shareholders’ Equity – Preferred Equity) ÷

Total Outstanding Common Shares

Dividend Yield = Dividend Per Share ÷ Current Share Price(Market

Value Per Share)
Dupont Analysis

ROE = Profit Margin × Asset Turnover × Financial Leverage

= (Net Income/Net Sales) × (Net Sales/Total Assets) × (Total Assets/Total
Shareholders’ Equity)