Coporate Finance Ratios

Gross Profit Margin

Gross Profit/Sales

Operating Profit Margin

Operating Income/Sales

Net Profit Margin

Net Income/Sales

Return on Assets

Net Income/Total Assets

Return on Equity (ROA)

Net Income/Common Equity (total equity-preferred)

Current Ratio

Current Assets/Current Liabilities

Quick Ratio

Current Assets - Inventory/Current liabilities

Debt Ratio

Total Debt/Total Assets

Debt to Equity Ratio

Total Debt/Common Equity

Times Interest Earned Ratio

Operating Income / Interest Expense

Average Collection Period

Accounts Receivable/ Avg. Daily credit sales (/365)

Inventory Turnover Ratio

Sales/Inventory

Fixed Assets Turnover Ratio

Sales/Net fixed sales

Total Asset Turnover Ratio

Sales/ Total Assets

Price to Earnings Ratio

market price per share/earnings per share

Market to Book Ratio

Market Price per share/Book value per share