Liquidity Ratio

• Current Ratio = CA/CL

• Quick ratio = (CA-Ending Inventory)/CL
• Receivable Turnover = Net Credit Sales/Av. Net
Receivables
• Average Collection Period = 365/Receivable
Turnover
• Inventory Turnover = COGS/Average Inventory
• Inventory Holding Period = 365/
Inventory Turnover
 Solvency Ratio
• Debt to TA Ratio = Total Debt/ TA
Where, Total Debt = TL
• Times Interest Earned Ratio or Interest
Coverage Ratio = EBIT/ Interest Expense
 Profitability Ratios
• Profit Margin = Net Income/ Net Sales
• Asset Turnover = Net Sales/ Average Assets
• ROA = Net Income /Average Assets
• ROE =Net Income After PS Dividend/AV. CS
Equity
• EPS = Net Income After PS Dividend/AV.
Number of CS outstanding
• P/E Ratio = Price/ EPS
• Payout Ratio = Dividend /Net Income