Finance/Accounting Ratios

Current Ratio

CA/CL (Liquidity)

Quick Ratio

CA-Inventories/CL (Liquidity)

Accounts Receivable Turnover

Sales/AR (asset management)

Inventory Turnover

CGS/Inventory (Asset Management)

Average Collection Period

AR/Daily Sales (Asset Management)

Equity Ratio

Equity/Assets (Debt Management)

Equity Multiplier

Assets/Equity (Debt Management)

Asset Turnovers

Sales/Total Assets (Asset Management)

Debt Ratio

TL/TA (Debt Management)

Debt-Equity Ratio

(TL/TE) X (EBIT/I) (Debt management)

Gross Profit Margin

Gross Profit/Sales (Profitability)

Return on Sales (Net Profit Margin)

Net Income/Sales (Profitability)

Return on Assets

NI/A (Profitability)

Return on Equity

NI/Equity (Profitability)

Price-Earnings Ratio

Market Price PS/(earnings PS=NI/# of sales) (Market Ratios)

Price-Book Ratio

market price PS/(book value PS=TE/#of shares) (Market Ratios)

Fixed Turnover

sales/fixed assets

Times Interest Earned (TIE)

EBIT/I