Financial Ratios

gross profit margin (%)

gross profit/net sales revenue x 100

mark-up on cost (%)

gross profit/cost of sales x 100

percentage of operating expense to net sales revenue (%)

operating expenses (need to - off interest)/net sales revenue x 100

profit margin (%)

net profit after interest epense/net sales revenue x 100

return on equity (%)

net profit after interest expense/ avg equity (beginning equity + ending equity/ 2) x 100

working capital

working capital = total current assets - total current liabilities

working capital ration/current ratio

total current assets/total current liabilities

quick ratio/acid test ratio

total liquid assets/total current liabilities

quick assets (exclude inventory & prepayment)

cash + net current receivables + short-term investments

days-sales-in-inventory (days)

avg inventory (beginning inv + ending inv/ 2)/ cost of sales x 365 days

working capital cycle (days)

(days-sales-in-inventory + accounts receivable collection period) - accounts payable payment period

rate of inventory turnover (TIMES)

cost of sales/avg inventory

accounts receivable collection period (DAYS)

average net accounts receivables/net credit sales revenue x 365 days

rate of accounts receivable turnover (TIMES)

net credit sales revenue/avg net accounts receivable

accounts payable payment period (DAYS)

avg accounts payables/cost of sales x 365 days

rate of accounts payable turnover (TIMES)

cost of sales/avg accounts payable

debt-equity ratio (can be in %)

total liabilities/total equity

interest coverage ratio

net profit before interest expense/interest expense

earnings per ordinary share

net profit - preference share dividends/ avg number of ordinary shares

price earning ratio of ordinary shares (TIMES)

mkt price per ordinary share/earnings per ordinary share

dividend yield (%)

dividend per ordinary share/mkt rice per ordinary share x 100%