Ratios Flashcards
Current ratio
(Current Asset)/(Current Liabilities)
Quick ratio
(Quick assets)/(Current Liabilities)
*Quick asset is current excluding inventory
Cash ratio
(CashMarketable securities)/(Current liabilities)
Debt to asset ratio
(Total debt)/(Total assets)
Debt to equity ratio
(Total debt)/(Total Equity)
Interest coverage
EBIT/(Interest Expense)
Gross profit margin
(Gross profit)/Revenue
Operating profit margin
(Operating income)/Revenue
Net profit margin
(Net income)/Revenue
Return on asset (ROA)
(Net income)/(Total asset)
Return on equity (ROE)
(Net income)/Equity
Or
Net profit margin × asset turnover × leverage
Total asset turnover
Activity ratio
Revenue/(average total assets)
Inventory turnover
Activity ratio
COGS/(Average Inventory)
Receivables turnover
Activity ratio
Revenue/(Average accounts receivable)
EPS
(Net income−Preferred dividends)/(Weighted Average shares outstanding)
P/E
(Market price per share)/EPS
Dividend Yield
(Annual dividends per share)/(Market price per share)
Working capital turnover
Activity ratio
Revenue/(Average working capital)
Fixed asset turnover
Activity ratio
Revenue/(Average Net Fixed Assets)
*Net of accumulated depreciation
days of sales outstanding (DSO)
Activity ratio
365/(Receivables Turnover)
Cash conversion cycle
DSO+Days inventory held−Number of days payables
Debt to capital
(Total debt)/(Total debt+Equity)
Fixed charged coverage
(EBIT+Lease payments)/(Interest payments+Lease payments)
Effective tax rate
(Tax expense)/(Earnings before tax)
Financial leverage
Debt/Equity
Days of inventory on hand (DOH)
Activity ratio
365/(inventory turnover)
Payable turnover
Activity ratio
Purchases/(average trade payables)
Number of days of payables
Activity ratio
365/(payables turnover)
Working capital
Activity ratio
Current asset - current liabilities
