Financial Analysis Formulas

Current Assets- Current Liabilities

Net Working Capital

Current Assets/Current Liabilities

Current Ratio (Working Capital Ratio)

Quick Assets/Current Liabilities

Quick Ratio

Cost of Goods Sold/Average Inventory

Inventory Turnover

Net Credit Sales/ Average Receivables

Receivable Turnover

Net Credit Purchases/Average Payables

Payable Turnover

Cost of Goods Sold / Average Finished Goods Inventory

Finished Goods Turnover

Cost of Goods Manufactured / Average Work In Progress Inventory F

Work in Process Turnover

Cost of Materials Used / Average Raw Materials Inventory

Raw Materials Turnover

Finished Goods Turnover + Work in Progress turnover + Raw Materials Turnover

Inventory Turnover

360 days / inventory turnover

Age of Inventory

360 days / Receivable turnover

Age of Receivable

360 days / Payable Turnover

Age of Payable

Sales / Average Total Assets

Asset Turnover

Sales / Average Fixed Assets

Fixed Asset Turnover

Age of Inventory + Age of Receivables

Normal Operating Cycle

Normal Operating Cycle - Age of Payables

Cash Conversion Cycle

Total Liabilites / Total Assets

Debt Ratio

Total Equity / Total Assets

Equity Ratio

Total Liabilities / Total Equity

Debt-Equity Ratio

1 / Equity Ratio

Equity Mulitiplier

EBIT / Interest Payments

Times Interest Earned

Gross Profit / Sales

Gross Profit Margin

EBIT / Sales

Operating Profit Margin

Profit / Sales

Net Profit Margin

Income / Sales

Return on Sales

Income / Average Assets

Return on Assetts

Income / Average Equity

Return on Equity

Net Income - Preferred Dividends / Weighted Average Common Shares Outstanding

EPS

Market Prie Per Share / EPS

Price Earnings Ratio

Dividend Per Share / Market Price per Share

Dividends Yield

Dividends Per Share / EPS

Dividend Payout

100% - Dividend Payout

Retention Ratio (Plowback Ratio)