Finance Formulas Cpt 4

EBIT or Net Operating Income

Revenue - COGS - Depreciation

Current Ratio

Current Assets/Current Liabilities

Acid (Quick) Ratio

(Current Assets - Inventory)/Current Liabilities

Days Sales Outstanding or Average Collection Period

Accounts Receivable / (Annual Credit Sales / 365) 

Inventory Turnover

COGS/Inventories

Day’s Sales in Inventory

365/Inventory Turnover Ratio

Debt Ratio

Total Liabilities/Total Assets

Times Interest Earned Ratio

EBIT/Interest Expense

Total Asset Turnover Ratio

Total Sales/Total Assets

Fixed Asset Turnover Ratio

Total Sales/Fixed Assets 

Gross Profit Margin

Gross Profit/Sales

Net Profit Margin

Net Income/Sales

Operating Return on Assets (OROA)

EBIT/Total Assets

Return on Assets (ROA)

Net Income/Total Assets

Return on Equity (ROE)

Net Income/Equity

Price Earnings Ratio

Market Price per Share/Earnings Per Share

Earnings per Share

Net Income/# of Shares

Gross Profit

Revenue - COGS

Net Working Capital

Current Assets - Current Liabilities

Debt to Worth Ratio

Total Liabilities/Total Equity

Debt to Income Ratio

Monthly Debt/Monthly Income

Supportable Debt

Monthly payment/Mortgage constant

Market to Book Ratio

Market price per share/book value per share

Book Value per Share

CS Equity/CS Outstanding

Capital Acquisition Ratio

Operating Cash Flow/Capital expenditure

Quality of earnings

Net cash from operating/Net Income