1.

Financial (Capital) Structure

A. Total Debt Ratio : Total assets−Total equity ∗100 %
Total assets

B. Long-term debt ratio : Long−term Debt

∗100 %
total long−term financing (long−term debt+total equity )

C. Long-term Capital Ratio= total long−term financing assets ¿∗100 % 。

total ¿

2. Ability of paying debt

A. Current Ratio : Current assets ∗100 %；（Working Capital Ratio）
current liabilities

B. Quick Ratio : Current assets−inventory ∗100 %

current liabilities

C. Cash Ratio: Cash

∗100 %
current liabilities

D. Times Interest Earned Ratio: EBIT

interest paid

E. Cash Coverage Ratio: ¿ EBIT + Depreciation(non−cash expense) ∗100 %

Interest Paid

3. Management Ability
A. Receivables Turnover, A/R Turnover: Sales or Sales
Accounts receivable Average Accounts receivable

B. Days’ Sales in Receivables : 365 days

receivables turnover

C. Accounts Payable Turnover, A/P Turnover: Sales or Sales

Accounts payable Average Accounts payable

D. Inventory Turnover: Cost of goods sold or Cost of goods sold

Inventroy Average Inventroy

E. Days’ Sales in Inventory, : 365 days

inventory turnover

F. Fixed Assets Turnover: Sales assets ¿ or Sales

assets ¿
Net ¿ Average Net ¿

G. Total Assets Turnover: Sales or Sales

Total assets Average Total assets

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4. Profitability
A. Returns on Assets, ROA: Net Income ∗100 % or Net Income
∗100 %
Total assets Average Total assets

B. Returns on Equity, ROE: Net Income ∗100 % or Net Income

∗100 %
Total equity Average Total equity
Net income
∗sales
C. Du Pont Identity (ROE): sales
∗assets
assets
equity

ROE= profit margin* total asset turnover* equity multiplier

= ROA*equity multiplier

D. Profit Margin: Net income ∗100 %

sales

E. Earnings per Share, EPS: Net income− preferred dividends

common s h ares outstanding

F. Price-Earnings Ratio ; PER ; P/E: market price per share

EPS

G. Price-Book Value Ratio ; PBR ; P/B＝ market value per share

Book value per share
TyearSales−T −1 Sales
∗100 %
H. Sales Growth Rate: T −1 Sales

I. Gross Sales Margin:＝ Sales−cost of slaes ∗100 % ＝ Gross Income ∗100 %

sales Sales

J. Return On Investment Ratio (ROIR):＝ E nd assets−B eginning assets ∗100 %

B eginning assets

5. Cash flow：
A. Cash Flow Ratio ¿ Operating cash flows ∗100 %
Current Liabilities

B. Fund Flow Adequacy Ratio¿ recent 5 years net Operating cash flows ×
recent 5 years(Capital spending+ inventory inrease+ cash dividents)
100%。

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6. Financial Leverage：
A. Degree of Financial Leverage (DFL)¿ EBIT
EBIT−interest paid