MLUSTRATION 13-3. Summary of Ratios ‘State Name of Ratio. Formula Results as ‘Overall Performance Measures 1. Piceeaming ratio Times 2. Return on assets Percent Netincome + Interest (1 — Tax rate) 3, Rein on beeen opt ‘Tong-term lablities + Shareholder’ equity Percent 4. Retun on shareholders’ equity 7 Percent Profitability Measures Gross 5. Gross margin percentage wee Percent ‘Net income 6. Profit margin te Percent Net income 7. Eamings per share Dollars 8. Cash Realization Cosh generated! by operations, Tes ‘Tests of investment Uullzation 9. Asse turnover sas revenues Times A soveaat ace Sawer, Tapas Thar ey 11. Equity tumover Times 12, Capital intensity Times 13. Days cash Days V4 Day recites (orcoecion pos) «azz Days "80mg aie om 16. inventory tumover aden Sales revenues 17, Working capital tumover ae Times 16. Current ratio Coren aie Ratio 19. Acid-test (quick) ratio, Moneta coment ase Ratio: ‘Tests of Financial Condition i Assets 20. Financial leverage ratio Times 21, Debtiequity ratio Percent o Percent 22. Debt/capitazation oe Percent Pretax operating profi + Interest 23. Times interest eared ng Peo Times 24, Cash flow/debt Sah meruied operators Pescent Tests of Dividend Policy Dvidends per share 25. Dividend yield ee Percent 26. Dividend payout ee: Percent