F2 - M8: Ratios

Gross (Profit) Margin

(Net Sales-COGS)/(Net Sales)

Profit Margin

NI/(Net Sales)

Return on Sales

EBIT/Sales

Return on Assets

NI/(Avg.Total Ass ets)

DuPont RoA

NI/(Net Sales) X Net Sales/ Avg Assets

Return on Equity

NI/(Avg.Total Equity)

OCF “coverage” Ratio

(Cash Flow from Ops)/CL

Current Ratio

CA/CL

Quick Ratio

(Cash-Inv-Prepai ds)/CL

Cash Ratio

(Cash+MS)/CL

A/R Turnover

(Net Sales)/(Avg.AR (net) )

Days Sales in A/R

(ending AR (net))/(Net Sales/365)

Inventory Turnover

COGS/(Avg. Inventory)

Days in Inventory

(ending inventory)/(COGS/365)

A/P Turnover

COGS/(Avg.AP)

Days in A/P

(ending AP)/(COGS/365)

Cash Conversion Cycle

Days Sales AR + days in inventory – days of payables outstanding

Debt to Equity

(Total L)/(Total E )

Total Debt Ratio

(Total L)/(Total A )

Equity Multiplier

(Total A)/(Total E )

Times Interest Earned

(Income before IE and tax)/(IE )

EBITDA

Top Down: Sales – COGS – OpEx

Bottom-Up: NI + Tax Exp + IE+ D&A

NI + Tax Exp + IE+ D&A

Old vs new assets, this clears up the image of earnings

EPS

(Income avail.to CS)/(WACSO )

Price to Earnings Ratio

PPS/(Basic EPS )

Dividend Payout

(cash dividends)/(NI )

Asset Turnover

(Net Sales)/(Avg Total A )