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Unformatted text preview: Fixed Charge Coverage Ratio = EBIT + Lease Payments Interest Charges +Lease Payments + Sinking fund payments (1- tax rate) Profitability Ratios Effect of liquidity, asset management and debt management on operating results. Net Profit Margin = Net Income Sales Return on Assets (ROA) = Net Income Total Assets Return on Common Equity (ROE) = Net income available to common stockholders Number of common shares O/S Market Value Ratios Relate stock price to its earnings and book value per share. What investors think of company’s future prospects based on past performance. Price/Earnings Ratio = Market price per share Earnings per share Price/Book Ratio = Market price per share Book value per share...
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- Fall '08
- Liquidity, Generally Accepted Accounting Principles, total assets, Price per share, Assets turnover ratio