Finance Notes - 18:53 Financial Ratios Liquidity Ratios...

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18:53 Financial Ratios Liquidity Ratios Current Ratio =current assets / current liability Quick Ratio = (current assets - inventory) / current liability Cash Ratio Cash / current liability Financial Leverage Total Debt Ratio = total debt / total assets Long-Term Debt Ratio Long Interest Coverage Ratio Cash Coverage Ratio Turnover Ratio Inventory turnover = COGS / Inventory Days’ sales in inventory Receivables turnover Days’ sales in receivables Asset turnover Profitability Measures Profit margin = net income / sales Return on Assets = net income / total assets Return on Equity = net income / total equity
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Market Value measures Earnings Per Share NI / shares outsanding Price-Earning Ratio Price per shares / EPS Price Sales Ratio Price per share / sales per share Market-To-Book Ratio Market value per share / book value per share Tobin’s Q Market value of assets / replacement cost of assets Du Pont Identity – Decomposing ROE ROE = net income / total equity = (net income/total equity) x (assets/assets)
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Finance Notes - 18:53 Financial Ratios Liquidity Ratios...

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