Liquidity Ratio

3 Net Working Capital Current Assets – Current Liabilities

A Current Ratio (Balance Sheet) Current Asset ÷ Current Liabilities
B Quick Ratio(Balance Sheet) Current Assets – Inventory ÷ Current Liabilities
C Working Capital (Balance Sheet) Current Assets - Current Liabilities
Activity Ratio
D Receivable Turnover Net Sales ÷ Average Accounts Receivable
(Income Statement & Balance Sheet)

E Average Collection Period 360 ÷ Receivable Turnover Rate

F Inventory Turnover Cost of goods sold ÷ Average Inventory
(Income Statement & Balance Sheet)

G Total Current Assets Turnover Net Sales ÷ Average Current Assets

(Income Statement & Balance Sheet)

H Fixed Assets Turnover Net Sales ÷ Average Fixed Assets

(Income Statement & Balance Sheet)

I Working Capital Turnover Net Sales ÷ (Total Current Assets – Total Current Liabilities
(Income Statement & Balance Sheet

J Total Assets Turnover Net Sales ÷ Total Assets

(Income Statement & Balance Sheet)

Leverage Ratio
K Debit Ratio T. Debits ÷ T. Assets
L Equity Capital T. Stock Holder’s Equity ÷ T. Assets
M Debit Equity Ratio Long Term Liabilities ÷ T. Stock Holder’s Equity
N Interest Coverage Ratio EBIT ÷ Interest Expenses
O Preferred Dividend Coverage Ratio Earning After Taxes ÷ Preferred Dividend
P Fixed Coverage Ratio BEBIT + Lease Payment ÷ Interest + Lease Payment + [(P.A +
P.S.D) * (1 ÷ (1-T))]
P.A = Principal Amount & P.S.D = Preferred Stock Dividend

Profitability Ratio
Q Gross Profit Margin (Gross Profit ÷ Net Sales) * 100
R Operating Profit Margin (Operating Profit ÷ Net Sales) * 100
S Net Profit (Net Income ÷ Net Sales) * 100
T Return On Assets (ROA) Net Income ÷ T. Assets
U Return On Equity Net Income ÷ T. Stock Holder’s Equity
V Return On Common Equity EAT – PD ÷ T. Common Stock Equity
W Earning Per Share Net Income - Preferred Dividend ÷ No. Of Outstand Common
Stock Holders
Market Value Ratio
X Price Earning Ratio Market Price Per Share ÷ EPS
Y Dividend Yield DPS ÷ Market Price Per Share
Z Dividend Payout Ratio DPS ÷ EPS
EAT = Earning After Income, PD = Preferred Dividend, EPS = Earning Per Share, DPS = Dividend Per Share

1 Cash Ratio T. Cash ÷ T. Assets

2 Equity Ratio T. Stock Holder’s Equity ÷ T. Assets
3 Net Working Capital C. Assets – (Inventory + Prepaid Assets) – C. Liabilities