Strategic Management Financial Ratios. Strategic Ratios. Profit Ratios Liquidity Ratios Activity Ratios Leverage Ratios Shareholder-Return Ratios. Profit Ratios.
Gross Profit Margin = Sales Revenue - Cost of Goods Sold
Net Profit Margin = Net Income
Return on Total Assets = Net Income Available to Common Stockholders
Net income is the profit after preferred dividends (those set by contract) have been paid. Total assets include both current and non-current assets.
Return on Stockholders' Equity = Net Income Available to Common Stockholders
Current Ratio = Current Assets
Quick Ratio = Current Assets - Inventory
Debt-to-Assets Ratio = Total Debt
Total debt is the sum of a company's current liabilities and its long-term debt, and total assets are the sum of fixed assets and current assets.
Debt-to-Equity Ratio = Total Debt
Price-Earnings Ratio = Market Price per Share
Earnings per Share
Market to Book Value = Market Price per Share
Book value per share of equity