470 Ratio Interpretations

Current ratio

Higher

Acid test ratio

Higher

Collection period

Lower

Days to sell inventory

Lower

Total debt to equity

Lower

Long-term debt to equity

Lower

Times interest earned

Higher

Return on assets

Higher

Return on common equity

Higher

Gross profit margin

Higher

Operating profit margin (pretax)

Higher

Net profit margin

Higher

Cash turnover

Higher

Accounts receivable turnover

Higher

Inventory turnover

Higher

Working capital turnover

Higher

PPE turnover

Higher

Total asset turnover

Higher

Price to earnings

Lower

Earnings yield

Higher

Dividend yield

Higher

Dividend payout rate

Lower

Price to book

Lower