Financial Ratios

Asset Turnover

Net sales / Average total assets

measures sales produced per 1.00 of assets

PMOS

Net income / total sales

measures income created from 1.00 of sales

Rate of return on assets

Net income / average total assets

OR

Profit margin x Asset turnover

Current (Quick)

Current assets / current liabilities

Acid test

(Cash + Short term investments + Net AR) / Current liabilities

Rate of Return on Common Stock Equity

(Net income - Preferred dividends) / Average common stockholders equity

Payout

Cash Dividends / (Net income - Preferred dividends)

BV per share

Common stockholder equity / Outstanding shares

Debt to Assets

Total liabilities / Total assetsT

Times Interest Earned

(Net income + Interest expense + Income tax expense) / Interest expense

Basic EPS

(Net income - preferred stock dividends) / WA number of common shares outstanding