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Formula Sheet - Selected Financial Ratios Liquidity Current...

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Selected Financial Ratios Liquidity s liabilitie Current assets Current ratio Current = s liabilitie Current s Inventorie assets Current ratio test) (Acid Quick - = Asset Management 365 sales/ credit Annual receivable Accounts period collection Average = inventory Average sales of Cost turnover Inventory = assets fixed Net Sales turnover asset Fixed = - assets Total Sales turnover asset Total = Leverage assets Total debt Total ratio Debt = equity rs' Stockholde debt Total ratio equity to Debt = - - charges Interest (EBIT) taxes and interest before Earnings earned interest Times = fund sinking tax Before tax before dividends Preferred payments Lease Interest payments Lease EBIT coverage charge Fixed + + + + = Holding Period Return P C t P P K t t t t 1 1 - - + - = Profitability Sales sales of Cost Sales margin profit Gross - = The textbook defines the bottom line on the income statements as Earnings after Taxes (EAT) . It is more commonly known as Net Income (NI) Sales NI margin profit Net = assets Total NI (ROI) investment on Return = ROI is also known as Return on Assets (ROA) equity rs' Stockholde NI (ROE) equity rs stockholde on Return = Market-Based share per value Book share per price Market P/B ratio book to Market = = share per earnings Current share per price Market P/E ratio earnings to Price = = share per value
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