LIQUIDITY Revenue

Current Assets Asset Turnover Ratio= Total Assets

Current Ratio= Current Liabilities
Accounts receivable turnover= Sales
Quick Ratio= (Cash + Short term Marketable Securities+ Accounts Receivable) Accounts Receivable
Current Liabilities
Or Average Collection Period= 365
In case the company is not giving breakup of Quick Assets, then: Accounts Receivable Turnover
(Current Assets- Inventory + Prepaid Expenses)
Current Liabilities Inventory Turnover= Cost of Good Sold
Inventory
PROFITABILITY RATIO
Average Age of Inventory = 365
ROE (return on equity) = Net Income Inventory Turnover
Stockholders’ equity
Accounts Payable Turnover= Purchases
Return on assets (ROA) = Operating income Inventory
Total assets
Average Payment Period = 365
Earnings per share (EPS)= Net Profit Accounts Payable Turnover
Total no. of shares outstanding

Dividends per share (DPS)= Amount Distributed to Shareholders Operating Cycle= Average Collection Period + Average Age of Inventory
No of Shares outstanding
FINANCIAL LEVERAGE
Gross profit margin = Gross profit
Sales Debt Ratio= Total Liabilities
Total Assets
Operating profit margin/ Earning Before Interest and Taxes (EBIT)
Debt-to-equity ratio= Total Liabilities
Operating profit margin = Operating income Total Equity
Sales
Interest Coverage Ratio= Earnings Before Interest and Taxes
Net profit margin = Net income Interest Expense
Sales
HORIZONTAL ANALYSIS
EFFICIENCY
Amount of change = Current year amount – Base (earlier) year amount
Ending Inventory
Add: Cost of Good Sold Percent of change = Amount of change
Less: Beginning Inventory Base (earlier) year amount
Purchases