ratios

Profit margin

Net income divided by operating revenues.

Return on assets

Net income divided by total assets.

Return on equity

Net income divided by equity.

Current ratio

Current assets divided by current liabilities.

Quick ratio or acid test ratio

(Cash + Marketable securities + Net accounts receivable) divided by current liabilities.

Average days receivable/average collection period

Net accounts receivable divided by (Revenue divided by 365).

Average days inventory

Inventory divided by (Cost of goods sold divided by 365).

inventory turnover ratio

cost of goods divided by average inventory

operating profit margin

operating income divided by revenue

operating income return on investment

operating income divided by total capital employed (which is total assets -current liabilities)

Asset turnover

Revenue divided by total assets.

Fixed-asset turnover

Revenue divided by net fixed assets.

Debt/Equity

Total liabilities divided by equity.

Leverage

Total assets divided by equity.

Long-term debt/equity

Non-current liabilities divided by equity.

Debt-service coverage

(Net income + Depreciation + Interest payments) divided by (Principal payments + Interest payments).

Times-interest-earned

(Net income + Interest payments) divided by Interest payments.

dupoint analysis

ROE= Net profit margin asset turnover equity multiplier