Activity Ratios

AR Turnover =

Days AR =

Inventory Turnover
=

Days Inventory =
Activity Ratios
AP Turnover =

Days AP =

Total asset
turnover

Fixed asset
turnover

Working capital
turnover
Solvency
Profitability
Liquidity
Valuation
Price-to- Share of Stock, at current market price
earnings
Earnings per share
ratio
Net Income - Preferred Dividends
Basic EPS =
Weighted Average Number of Shares
Outstanding
Basic EPS - Impact of Dilutive Securities
Diluted EPS =
(Convertibles, Options, Warrants, Others)

Sustainable Growth Rate (g) = RR x ROE

RR = 1 Dividend Payout Ratio

where,
Dividend Dividends Declared
=
Payout Net Income - Preferred Dividends
Ratio
aditional DuPont System

Return Net Income Sales Total Assets

= x x
on Sales Total Common
Equity Assets Equity
Profit Total asset Financial
x x
margin turnover leverage
 Market Value
Price Price Per Share
=
Earnings Earnings Per share
Ratio

Book Common Equity

Value Per = Shares Outstanding
share

Market Market Price Per share

book =
Book Value Per share
ratio
 Profitability
Basic EBIT
=
Earnings Total Assets
Power
 Performance Measures
NOPAT = (EBIT) (1-Tax rate)
(Net
Operating
Profit After
Tax)

Market
Value = (Shares outstanding x Stock Price) Total Common Equity
Added

Economic
= EBIT (Total Capital x cost of capital)
Value Added