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Ratio Formulas

1. Current Ratio =

2. Quick Ratio =

3. Average Collection Period =

4. Accounts Receivable Turnover ratio =


= 365/ Average collection period
5. Inventory Turnover Ratio =

6. Debt Ratio =

7. Times Interest Earned =

8. Total Asset Turnover =

9. Fixed Asset Turnover=

10. Gross Profit Margin =

11. Operating Profit Margin(OPM)=

12. Net Profit Margin(NPM)=

13. Operating Return on Assets(OROA)=

14. Return on Equity(ROE) =

15. Price-Earnings (P/E)Ratio =

16. Earnings Per Share(EPS) =

17. Market- to -Book Ratio=

18. Book Value per Share =


19. Operating Return on Assets = Operating profit margin( OPM) x total asset turn over(TATO)

= X

20. Return on Equity ( ROE) = Profitability × Efficiency × Equity Multiplier

= Net profit Margin x total asset turnover x equity multiplier

= x x

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