FAR CPA ratios

gross (profit) margin

(sales (net) - COGS) / sales (net)

profit margin

net income / sales (net)

return on sales

income before interest income, interest expense, and taxes / sales (net)

return on assets

net income / average total assets

DuPont return on assets

profit margin X asset turnover

(ni/sales) X (sales/avg total assets)

return on equity

ni/avg total equity

operating cash flow ratio

cash flow from operations / current liabilities

current ratio

current assets/current liabilities

quick ratio

cash and cash equivalent + short-term marketable securities + receivable / current liabilities

accounts receivable turnover

sales / avg AR

days sales in ar

ending ar / (sales/365)

inv turnover

cogs / avg inv

days in inv

end inv / (cogs/365)

accounts payable turnover

cogs / avg ap

days in payables outstanding

ending ap / (cogs/365)

cash conversion cycle

days sales in ar + days in inv - days of payables outstanding

debt-to-equity

total liabilities / total equity

total debt ratio

total liabilities / total assets

equity multiplier

total assets / total equity

times interest earned

income before interest expense and taxes / interest expense

earnings 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 / ni

asset turnover

sales / avg total assets