Value Value Ratio

Main input 2008 2007 Name

1- Profitability Ratios

Gross Profit GPM (Gross Profit Margin)

Operating Incom OR OPM (Operating Profit

EBIT Margin)

Net Profit NPM or ROS (net profit

OR Net Income marginor return on sales)

Sales ROE (Return on Equity)

ROA & ROI (Return on

Total Equity
Assets)

Total Assets

interest Expenses

2- Liquidity Ratios

Current Assets Working Capital

Current Liabilities Current Ratio

Inventory Quick Ratio

Cash + Cash Equivalent Cash Ratio

3- Solvency OR Leverage

Total Liabilities D2TA OR Debt Ratio

Total Assets 103601 D/E Ratio (Debt to Equity)

 Total Equity OR
Financial Leverage
Stockholders' Equity

interset paid Times Interest Earned Ratio

Cash Flow from

Cash Coverage
operating activitie

4- Efficiency OR Assets Manage

TATO (Total Assets Turn
Over)

FATO (Fixed Assets Turn

Fixed Assets
Over)

Account Receivables RTO (Receivable Turn Over)

ACP (Average Collection

Period)

inventory Turn Over

DOH (inventory Days on

Hand)

5- Market Test OR Market

Average No. of Shares Earnings Per Share (EPS)

Current MKT Price per

Price / Earning Ratio (P/E)
Share

Dividend per Share Dividend Yield Ratio

 Equation OR Result how Result
Formula 2008 Express 2007

1- Profitability Ratios

(Gross Profit / Sales) * 100 #DIV/0! % #DIV/0!

(Operating Income or EBIT/ Sales) * 100 #DIV/0! % #DIV/0!

(net profit or net income / Sales) * 100 #DIV/0! % #DIV/0!

(Net income / Total Equity) * 100 #DIV/0! % #DIV/0!

Net incom + interest expense (net of

#DIV/0! Decimal #DIV/0!
tax) / Total Assets

2- Liquidity Ratios

Current Assets - Current Liabilities 0 value 0

Current Assets / Current liabilities #DIV/0! Decimal #DIV/0!

(Current Assets - Inventory) / Current

#DIV/0! Decimal #DIV/0!
Liabilities

(Cash + Cash Equivalent) / Current Liabilities #DIV/0! Decimal #DIV/0!

Solvency OR Leverage Ratios

(Total Liabilities / Total Assets) * 100 0 % #DIV/0!

Total Liabilities / Total Equity #DIV/0! Decimal #DIV/0!

 Total Assets / Stockholders' Equity #DIV/0! Times #DIV/0!

Operating Income or EBIT / Interest Expenses #DIV/0! Times #DIV/0!

Cash flow from Operating activities / interest

#DIV/0! #DIV/0!
paid

ncy OR Assets Management Ratios

Sales / Total Assets #DIV/0! Decimal #DIV/0!

Sales / Fixed Assets #DIV/0! Decimal #DIV/0!

Sales / Account Receivables #DIV/0! Times #DIV/0!

365 / RTO #DIV/0! Days #DIV/0!

Sales / Inventory #DIV/0! Times #DIV/0!

365 / inventory Turn Over #DIV/0! Days #DIV/0!

Market Test OR Market Ratios

Net income / Average no. of shares of
#DIV/0! #DIV/0!
common stock outstanding

Current Market price per share / Earning per

#DIV/0! Decimal #DIV/0!
Share

Dividend Per Share / Current Market Price Per

#DIV/0! % #DIV/0!
Share
 Interpretation

Profitability is a primary measure of the overall success of a company

For each one $ of sales the company generate XX $ of Gross Profit (before
subtact operation expenses)

For each one $ of sales the company generate XX $ of Operating Profit

(before subtact operation expenses)

For each one $ of sales the company achieves XX $ of Net Profit (before
subtact operation expenses)

For each one $ invesed by the owner's the Company achieves XX $ of net
profit (if raised means the Stakeholders are better-off)

Each one $ invested on Assets results in XX $ of net income (it considered

as the best overall measure of copmany profitability)

Liquidity measure the company ability to pay its short term libailities
using its short term assets
The excess of current assets over than current liabilities equals X $ or the
oppisit if current liabilities is greater

For each one $ of current liabilities the company has XX $ of current assets

For each one $ of current liabilities the company has XX $ of Quick assets

The company immediate ability to pay its debts by cash is XXX $

Tests of solvency measure a company’s capability to meet its long-

term obligations.
it means that XX % of Assets are financed through liabilities or Debts (more
Risky OR less Risky)

For each one $ in Equity there are XXX of liabilities

For each one $ invested by the owners the company levered up the assets
to XXX $ OR ( Assets are XXX Times Equity)

The firm can pay its total interest expense XX Times out of its EBIT

For every one $ invested in Total Assets the company generates XX $ of

Sales

For every one $ invested in Fixed Assets the company generates XX $ of

Sales

The company could Collect the money XXX Times per year

The company takes XXX days to collect Mony from Customers

The company could sell inventory XXX Times per year

The Good Sold every XXX Days OR Inventory lasts for XXX days

Indicates the dividend rate of return to common shareholders at the current

market price.