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Financial ratios are used to evaluate a company's financial performance and health by
analyzing relationships between different elements of its financial statements. Here are a few common
financial ratios along with their formulas:
1. **Liquidity Ratios:**
- **Current Ratio:** Measures a company's ability to cover its short-term liabilities with its short-term
assets.
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- **Quick Ratio (Acid-Test Ratio):** Similar to the current ratio but excludes inventory, providing a
more conservative measure of liquidity.
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2. **Profitability Ratios:**
- **Gross Profit Margin:** Measures the percentage of revenue that exceeds the cost of goods sold
(COGS).
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- **Net Profit Margin:** Measures the percentage of revenue that remains as profit after all expenses,
including taxes and interest.
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3. **Efficiency Ratios:**
- **Inventory Turnover Ratio:** Measures how many times a company's inventory is sold and replaced
over a period.
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- **Accounts Receivable Turnover Ratio:** Measures how efficiently a company is collecting revenue
from its customers.
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4. **Debt Ratios:**
- **Debt-to-Equity Ratio:** Measures the proportion of debt to equity used to finance a company's
assets.
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- **Interest Coverage Ratio:** Measures a company's ability to cover its interest expenses with its
operating income.
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These are just a few examples, and many more ratios can provide insights into different aspects of a
company's financial performance and position.
If you want to use a VLOOKUP formula to convert a date to the weekday name, you'll need a separate
table that maps each numerical representation of the weekday (e.g., 1 for Sunday, 2 for Monday, etc.) to
the corresponding weekday name. Here's how you can set it up:
Assuming your dates are in column A starting from A1, and you want the weekday names in column B:
1. In another part of your spreadsheet, create a table with two columns. In the first column, list the
numerical representations of the weekdays (1 for Sunday, 2 for Monday, and so on), and in the second
column, list the corresponding weekday names (e.g., Sunday, Monday, etc.).
2. Let's say this table starts from cell E1, with weekdays in column E and corresponding names in column
F.
3. Then, in cell B1, where you want the weekday name for the date in A1, you can use the following
formula:
```excel
```
This formula looks up the numerical representation of the weekday using the WEEKDAY function, then
searches for it in the first column of the table (column E), and returns the corresponding weekday name
from the second column of the table (column F). The FALSE parameter ensures an exact match.