Ratios & Formulas (FSA)

Current Ratio

Current Assets / Current Liabilities

Quick Ratio

Current Assets - Inventory / Current Liabilities

Account Receivable Turns

Sales or Revenue / Average Account Receivable

Accounts Payable Turns

Cost of Goods Sold / Average Account Payable

Inventory Turns

Cost of Goods Sold / Average Inventory

Account Payable Days on Hand

365 / Account Payable Turns

Account Receivable Days on Hand

365 / Account Receivable Days

Inventory Days on Hand

365 / Inventory Turns

Cash Conversion Cycle

A/R DOH + Inv DOH - A/P DOH

Debt Ratio

Average Debt / Average debt + Avg Equity

Interest Coverage

Net Operating Income / Interest Expense

Financial Leverage

Average assets / Average Equity

Profit Margin

Net Income / Revenue

Asset Turnover

Revenue / Average Assets

Return on Assets

Net Income / Average Assets

Return on Equity

Net Income / Average Equity

Dupoint Analysis

(Net Income / Sales) * (Sales/Assets) * (Assets/Equity)

WACC

Rd (1-Tx) * Avg Debt / Avg Debt + Mkt Cap + (Rf + Beta (Rm-Rf)) (Mkt Cap / Avg Debt + Mkt Cap)