Liquidity Ratios
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Liquidity Ratios (1) Current =(Current Assets/Current Liabilities) Asset Management Ratios PowerPoint PPT Presentation


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Liquidity Ratios (1) Current =(Current Assets/Current Liabilities) Asset Management Ratios (2) Inventory Turnover=(Sales/Inventories) (3) Days Sales Outstanding (DSO)=(Receivables/Average Daily Sales) (4) Fixed Assets Turnover=(Sales/Net Fixed Assets)

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Liquidity Ratios (1) Current =(Current Assets/Current Liabilities) Asset Management Ratios

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Liquidity ratios 1 current current assets current liabilities asset management ratios

Liquidity Ratios

(1) Current =(Current Assets/Current Liabilities)

Asset Management Ratios

(2) Inventory Turnover=(Sales/Inventories)

(3) Days Sales Outstanding (DSO)=(Receivables/Average Daily Sales)

(4) Fixed Assets Turnover=(Sales/Net Fixed Assets)

(5) Total Assets Turnover=(Sales/Total Assets)

Debt Management Ratios

(6) Debt Ratio=(Total debt/Total Assets)

(7) Times-Interest-Earned (TIE)=(EBIT/Interest Charges)

(8) EBITDA Coverage=[(EBITDA+Lease Payments)/(Interest+Principal Payments+Lease Payments)]

Profitability Ratios

(9) Profit Margin on Sales=(Net Income/Sales)

(10) Basic Earning Power (BEP)=(EBIT/Total Assets)

(11) Return on Total Assets (ROA)=(Net Income/Total Assets)

(12) Return on Common Equity (ROE)=(Net Income/Common Equity)

Market Value Ratios

(13) Price/Earnings (P/E)= (Price per share/Earnings per share);

EPS=(Net Income/Common Shares Outstanding)

(14) Price/Cash Flow=(Price per share/Cash flow per share);

CFPS=(Net Income+Dep+Amort)/(Common Shares Outstanding)

(15) Market/Book (M/B)=(Price per share/Book value per share);

BVPS=(Total Common Equity/Common Shares Outstanding)

Du Pont Equation

(16) ROA= (Profit Margin)*(Total Assets Turnover Ratio)

(17) ROE= (Profit Margin)*(Total Assets Turnover Ratio)*(Equity Multiplier);

Equity Multiplier=(Total Assets/Common Equity)


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