1.

Liquidity Ratios
Current Ratio= Current assets ÷ Current liabilities

Quick Ratio= cash + marketable securities + Accounts receivable

Current Liabilities

2. Leverage Ratio
Debt Ratio= Total liabilities ÷ total assets

Debt to equity ratio= Total Liabilities ÷ total equity

Interest Coverage Ratio= Earnings before interest and Taxes (EBIT) ÷ Interest expense

3. Efficiency Ratios
Accounts Receivable turnover= Sales ÷ Accounts receivable

Average Collection period= 365 ÷ Accounts Recievable turnover

Inventory Turnover= Cost of goods sold ÷ inventory

Average age of inventory= 365 ÷ Inventory Turnover

Accounts payable turnover= Purchases ÷ inventory

Average payment period = 365 ÷ Accounts payable turnover

Operating Cycle= Average collection period+ average age of inventory

Cash conversion cycle=

Average collection period + Average age of inventory - Average age of payables
OR

Cash Conversion Cycle = Operating Cycle - Average Age of Payables

4. Profitability Ratios
Return on equity= Net income ÷ Stockholders equity

Return on assets= Operating Income ÷ Total assets

Gross profit margin= Gross profit ÷ Sales

Operating Profit Margin= Operating income ÷ sales

Net profit Margin= Net income ÷ sales