Formulas FA

Accounting equation

Assets = Stockholders' equity + Liabilities

Current Ratio

Current assets / Current liabilities

Earnings per share (EPS)

Net income / Number of outstanding shares

Asset turnover ratio

Net sales / Average total assets

Gross profit percentage

(Gross profit / Net sales) x 100

Return on assets (ROA)

(Net income / Average total assets) x 100

Net sales

Sales revenues - (Credit card and sales discounts + Sales returns and allowances)

Receivables turnover ratio

Net credit sales / Average accounts receivable

Inventory turnover ratio

Costs of goods sold / Average inventory

Dividend yield ratio

(Annual dividends per share / Price per share) x 100

Quality of income ratio

Operating cash flow / Net income

Return on Equity (ROE)

(Net income / Stockholders' equity) x 100

Net profit margin ratio

(Net income / Revenue) x 100

Quick ratio

(Current assets - Inventory) / Current liabilities

Cash ratio

(Cash + Equivalents) / Current liabilities

Debt to equity ratio

Total debt / Stockholders' equity

Price to earnings ratio

Market price per share / EPS

Interest coverage ratio

EBIT / Interest expense

Cash coverage ratio

Operating cash flow / Interest