Measures of profitability
Gross profit (margin) %
Net income percentage
Return on equity
Return on assets
Measures of solvency
Debt to assets percentage
Interest coverage ratio
Measures of liquidity
Current ratio
Quick ratio
Accounts receivable turnover
Accounts receivable days
Inventory turnover
Inventory days
Trade payables turnover
Trade payables days
Gross profit (margin) %
Gross profit/sales
Net income percentage
Net income/sales
Return on equity
Net income/average stockholders equity
Return on assets
Operating income/ Average total assetes
(Operating income=Gross profit - SGA Exepenses + other operating income)
OR
Asset turnover x Operating income percentage
Asset turnover
Sales/Average total assets
Operating income %
Operating income/sales
Debt to assets percentage
Total liabilities/total assets
Interest coverage ratio
EBITD/Interest expense
Current ratio
Current assets/current liabilities
Quick ratio
Financial assets/current liabilities
(Financial assets= cash + marketable securities (short term investments) + receivables)
Accounts receivable turnover
Sales/average accounts receivable
Account receivable days
365 days/accounts receivable turnover
Inventory turnover
Cost of goods sold/Average inventory
Inventory days
365 days/inventory turnover
Trade payables turnover
Ending inventory + CGS - Beginning inventory= Inventory purchases
Inventory purchases/Average trade payables
Trade payable days
365/Trade payable turnover