__Accounting Ratios__

**Liquidity Ratios:**

Current ratio =
Current Assets/ Current Liabilities

Quick (Acid-Test) Ratio = (Cash + Short Term Securities +
Acc. Recv) / Current Liab.

Working Capital = Current Assets - Current Liabilities

Cash Flow from Operations to Current Liabilities ratio = CFO
/Avg Curr. Liab

**Leverage Ratios:**

Debt to Equity = Total Liabilities / Total Equity

Debt to Asset = Total Liabilities / Total Asset

Financial Leverage = Total Asset / Total Equity

Times Interest Earned = (Net Income before Interest Expense
and Taxes) / Interest Expense

**Operating Ratios:**

Accounts Receivable Turnover = Revenue / Avg. Accts.
Receivables

Acc. Receivables Collection Period = 365 / Acc. Receivables
Turnover

Inventory turnover = Cost of Goods Sold / Average Inventory

Inventory Holding Period = 365 / Inventory Turnover

Accounts payable turnover = Purchases/Avg. Accts. Payables

Asset turnover = Revenue / Avg. Assets

**Profitability Ratios: **

Gross Margin percentage = 100% * (Revenue - CGS) / Revenue

Profit Margin = Net Income / Revenue

Return on Assets = [Net Income + Interest Expense x (1 - Tax
Rate)] / Avg. Assets

Return on Equity = (Net Income - Preferred Dividends) / Avg.
Equity (excluding Pref. Stock)

**Market Ratios**

P/E
ratio = Price per share /Earnings per share

Dividend per share = Dividends / Number of shares

Dividend yield = Dividend per share / Price per share

Dividend payout ratio = Dividends per share / Earnings per
share è Dividend yield*P/E ratio

Book value per share = (Total Shareholder’s Equity- Pref.
Stock) / Number of common shares

Market to Book = Market value per share / Book value per
share