Fin. Modeling Ratios for Financial Analysis

Current Ratio

Current Ratio = Current Assets / Current Liabilities

Quick Ratio

Quick Ratio = (Current Assets - Inventory) / Current Liabilities

Inventory Turnover Ratio

Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory

Accounts Receivable Turnover Ratio

AR Turnover = Net Credit Sales / Average Accounts Receivable

Average Collection Period

Average Collection Period = 365 / Accounts Receivable Turnover

Fixed Asset Turnover

Fixed Asset Turnover = Net Sales / Net Fixed Assets

Total Asset Turnover

Total Asset Turnover = Net Sales / Total Assets

Total Debt Ratio

Total Debt Ratio = Total Debt / Total Assets

Long-Term Debt Ratio

LTD Ratio = Long-Term Debt / Total Assets

LTD to Total Capitalization

LTD to Total Capitalization = Long-Term Debt / (Long-Term Debt + Equity)

Debt to Equity

Debt to Equity = Total Debt / Equity

Long-Term Debt to Equity

Long-Term Debt to Equity = Long-Term Debt / Equity

Times Interest Earned

Times Interest Earned = EBIT / Interest Expense

Cash Coverage Ratio

Cash Coverage Ratio = (EBIT + Depreciation) / Interest Expense

Gross Profit Margin

Gross Profit Margin = Gross Profit / Net Sales

Operating Profit Margin

Operating Profit Margin = Operating Income / Net Sales

Net Profit Margin

Net Profit Margin = Net Income / Net Sales

Return on Total Assets (ROA)

Return on Total Assets = Net Income / Total Assets

Return on Equity (ROE)

Return on Equity = Net Income / Equity

Return on Common Equity

Return on Common Equity = (Net Income - Preferred Dividends) / Common Equity

DuPont ROE

DuPont ROE = Net Profit Margin × Total Asset Turnover × Equity Multiplier

Market Value of Equity

Market Value of Equity = Price Per Share × Shares Outstanding