September September

LIQUIDITY RATIOS FORMULA 27,2014 23, 2013

Current ratio
Current assets

Current
Liabilities
Quick ratio
Current assets
Inventory

Current
liabilities
Inventory to net
working capital Inventory

Current assets
current
liabilities
Cash ratio
Cash + Cash
equivalents

Current
liabilities

PROFITABILITY FORMULA
RATIOS
Net profit margin
Net profit after
taxes

Net sales
Gross profit
margin Sales Cost of
goods sold

Net sales
ROI
Net profit after
taxes

Total assets
ROE
Net profit after
taxes

Shareholders
equity
Earnings per
share Net profit after
taxes
preferred stock
dividends

Average
number of
common share

ACTIVITY RATIOS FORMULA

Inventory
turnover Net sales

Inventories
Days of
inventories Inventories

COGS + 365
Net working
capital turnover Net sales

Net working
capital
Assets turnover
Sales
 Total assets
Fixed assets
turnover Sales

Fixed Assets
Average
collection period Account
receivable

Sales for year

+ 365
Account
receivable Annual credit
turnover sales

Account
receivable
Account payable
period Account
payable

Purchased for
year365
Days of cash
Cash

Net sales for

year 365

LEVERAGE RATIOS FORMULA

Debt-to-asset
ratio Total debts

Total assets
Debt-to-equity
ratio Total debt

Shareholders
 equity
Long-term debt
to capital Long-term
structure debts

Shareholders
equity
Times interest
earned Profit before
taxes + Interest
charges

Interest
charges
Coverage of fixed
charges Profit before
taxes+ Interest
charges+ Lease
charges

Interest
charges +
Lease
Obligation
Current liabilities
to equity Current
liabilities

Shareholders
quite