Stupid Finance Ratios

market cap

shares outstanding x price per share

merket-to-book

market cap / book value of equity

P/E ratio

price per share / earnings per share

total cap

long-term debt + equity

return on capital (ROC)

net income / total cap

return on assets (ROA)

net income / total assets

return on equity (ROE)

net income / equity

recievables turnover

sales / avg recievables

days sales outstanding (DSO)

365 / recievables turnover

inventory turnover

COGS / inventory

days inventory held

365 / inventory turnover

payables turnover

COGS / accounts payable

days payable

365 / payables turnover

asset turnover

sales / beginning total assets

net trade cycle

DSO + days inventory - days payable

gross margin

gross profit / sales

operating margin

EBIT / sales

net margin

net income / sales

debt-to-assets

total liabilities / total assets

debt-to-equity

long-term debt / equity

times interest earned (TIE)

EBIT / interest

cash coverage

(EBIT + depreciation) / interest

current ratio

current assets / current liabilities

quick (acid test) ratio

(cash + marketable securities + recievables) / current liabilities

return on assets (Dupont)

net margin x asset turnover

return on equity (Dupont)

net margin x asset turnover x equity multiplier