Accounting Financial Statement Measures

List of 23 financial ratios that can be organized into the categories of profitability, activity, solvency, and liquidity.

Return on Equity

Net income / Average stockholders' equity

Return on Assets

Net income / Average total assets

Profit Margin

Net income / Net sales

Gross Profit Percentage

Gross profit / Net sales

Asset Turnover

Net sales / Average total assets

Accounts Receivable Turnover

Net credit sales / Average accounts receivable

Average Days to Collect Receivables

365 / Accounts receivable turnover

Inventory Turnover

Cost of goods sold / Average inventory

Average Days in Inventory

365 / Inventory turnover

Fixed Asset Turnover Ratio

Net sales / Average fixed assets

Accounts Payable Turnover

Cost of goods sold / Average accounts payable

Average Days Payable Outstanding

365 / Accounts payable turnover

Cash Conversion Cycle

Average days to collect receivables + Average days in inventory - Average days payable outstanding

Financial Leverage

Average total assets / Average stockholders' equity

Times Interest Earned

Income before interest and taxes / Interest expense, gross

Cash Debt Coverage

Cash provided by operating activities / Average total liabilities

Free Cash Flow

Cash provided by operating activities - Capital expenditures - Cash dividends

Current Ratio

Current assets / Current liabilities

Quick Ratio

(Cash + Marketable securities + Receivables) / Current liabilities

Working Capital

Current assets - Current liabilities

Current Cash Debt Coverage

Cash provided by operating activities / Average current liabilities