FAR- Ratio Analysis

Gross (profit) Margin

Sales (net) - Cost of goods Sold / Sales (net)

Profit Margin

Net Income / Sales (net)

Return on Sales

Income before interest income, interest expense ,and taxes / Sales (net)

Return on Assets (ROA)

Net Income / Average total Assets

DuPont Return on Assets

Profit Margin x Asset Turnover

Return on Equity

Net Income / Average total equity

Operating Cash Flow Ratio

Cash flow from operations / Current Liabilities

Current Ratio

Current Assets / Current Liabilites

Quick Ratio

Cash and Cash Equivalents + ST Marketable Securities + Receivable (net) / Current liabilites

Accounts Receivable Turnover

Sales (net) / Average accounts receivable (net)

Days Sales in Account Receivable

Ending accounts receivable (net) / Sales (net) /365

Inventory Turnover

Cost of Goods Sold / Average Inventory

Days in Inventory

Ending Inventory / Cost of goods sold /365

Accounts Payable Turnover

Cost of Goods Sold / Average accounts payable

Days of payables outstanding

Ending accounts payable / Cost of goods sold /365

Cash Conversion Cycle

Days sales in accounts receivable + Days in inventory - Days of payable outstanding

Debt-to-Equity Ratio

Total Liabilities / Total Equity

Total Debt Ratio

Total liabilites / Total assets

Equity Multiplier

Total assets / total equity

Times Interest Earned

Income before interst expense and taxes / Interest Expense

EBITDA

Earnings before interest, taxes, depreciation, and amortization

Earning per Share

Income available to common shareholders/ Weighted average common shares outstanding

Price-to-earnings Ratio

Price per share / Basic earnings per share

Dividend Payout

Cash dividends / Net income

Asset Turnover

Sales (net) / Average total assets