FAR Ratios

Gross Margin

(Net Sales - COGS)/ Net Sales

Profit Margin

Net Income/ Net Sales

Return on Sales

(Income before interest income, interest expense, and taxes)/Net Sales

Return on Assets

Net Income/ Average Total Assets

DuPont Return on Assets

Profit Margin * Asset Turnover

(Net Income/Net Sales) * (Net Sales/Average Total Assets)

Asset Turnover

Net Sales/ Average Total Assets

Return on Equity

Net Income/ Average Total Equity

Operating Cash Flow Ratio

Cash Flow from Operations/ Current Liabilities

Current Ratio

Current Assets/ Current Liabilities

Quick Ratio

(Cash & Cash Equivalents + Short-term marketable securities + Net Receivables)/ Current Liabilities

A/R Turnover

Net Sales/ Net Average A/R

Days Sales in A/R

Net Ending A/R/ (Net Sales/365)

Inventory Turnover

COGS/Average Inventory

Days in Inventory

Ending Inventory/ (COGS/365)

A/P Turnover

COGS/Average A/P

Days of Payables Outstanding

Ending A/P/ (COGS/365)

Cash Conversion Cycle

Days Sales in A/R + Days in Inventory - Days of Payables Outstanding

Debt-to-Equity

Total Liabilities/Total Equity

Total Debt

Total Liabilities/Total Assets

Equity Multiplier

Total Assets/Total Equity

Times Interest Earned

Income before interest expense and taxes/Interest expense

Earnings Per Share

Income available to common shareholders/ Weighted Average Common Shares Oustanding

Price-to-Earnings

Price per Share/ Basic Earnings per Share

Dividend Payout

Cash Dividends/ Net Income