ry of Financial Ratiosrm Liquidity RatiosCurrent ratio = current assets/current liabilitiesQuick ratio = (cash + short-term investments + receivables)/current liabilitiesOperating cash flow ratio = cash flows from operating activities/current liabilitiesanagement RatiosTimes interest earned (accrual basis) = operating income/interest expenseTimes interest earned (cash basis) = (Cash Flows from Operations + Income Taxes Payable + Interest Payments)/interLong-term debt to equity ratio = long-term debt (including current portion)/total equityDebt-to-equity ratio = total liabilities/total equityLong-term debt to total assets ratio = long-term debt (including current portion)/total assetsDebt-to-assets ratio = total liabilities/total assetsfficiency RatiosAccounts receivable turnover ratio = net credit sales (or net sales)/average accounts receivableInventory turnover ratio = cost of goods sold/average inventoryAsset turnover ratio = net sales/average total assets