Accounting 11 Ratios

Return on Equity (ROE)

Net income / Average total stockholders' equity

Return on Assets (ROA)

Net income / Average total assets

Gross profit margin ratio

Gross profit / Net sales revenue

Net profit margin ratio

Net income / Net sales revenue

Earnings per share ratio (EPS)

Net income / Weighted average # of common shares outstanding

Quality of income ratio

Cash flows from operating activities / Net income

Asset Turnover Ratios

Total asset turnover ratio

Net sales revenue / average total assets

Fixed asset turnover ratio

Net sales revenue / average net fixed assets

Receivables turnover ratio

Net credit sales / average net receivables

Inventory turnover ratio

Cost of goods sold / average inventory

Liquidity Ratios

Current ratio

Current Assets / Current liabilities

Quick ratio

(Cash & Cash equivs + net accounts R + marketable securities) / current liabilities

Cash ratio

cash & cash equivs / current liabilities

Solvency Ratios

Times interest earned ratio

(Net income + int exp + income tax expense) / interest expense

Cash coverage ratio

cash flows from operating activities / interest paid

Debt-to-equity ratio

total liabilities / stockholders' equity

Market Ratios

Price/Earning (P/E) ratio

Market Price per Share / Earnings per share

Dividend yield ratio

Dividends per share / market price per share