Question | Answer |
receivable turnover | annual sales/average receivables |
days of sales outstanding | 365/receivables turnover |
inventory turnover | cost of goods sold/average inventory |
days of inventory on hand | 365/inventory turnover |
payables turnover | purchases/average trade payables |
number of days of payables | 365/payables turnover ratio |
total asset turnover | revenue/average total assets |
fixed asset turnover | revenue/average net fixed assets |
working capital turnover | revenue/average working capital |
current ratio | current assets/current liabilities |
quick ratio | (cash + marketable securities + receivables)/current liabilities |
cash ratio | (cash + marketable securities)/current liabilities |
defensive interval | (cash + marketable securities + receivables)/average daily expenditures |
cash conversion cycle | days sales outstanding + days of inventory on hand - number of days of payables |
debt-to-equity | total debt/total shareholders' equity |
debt-to-capital | total debt/(total debt + total shareholders' equity) |
debt-to-assets | total debt/total assets |
financial leverage | average total assets/average total equity |
interest coverage | earnings before interest and taxes/interest payments |
fixed charge coverage | (earnings before interest and taxes + lease payments)/(interest payments + lease payments) |
net profit margin | net income/revenue |
gross profit margin | gross profit/revenue |
operating profit margin | operating income/revenue or EBIT/revenue |
pretax margin | EBT/revenue |
return on assets(ROA) | net income/average total assets or (net income + interest expense(1-tax rate))/average total assets |
operating return on assets | operating income/average total assets or EBIT/average total assets |
return on total capital(ROTC) | EBIT/average total capital |
return on equity(ROE) | net income/average total equity |
return on common equity | (net income - preferred dividends)/average common equity |
equity turnover | Revenue/Equity |
tax burden | Net Income/EBT |
interest burden | EBT/EBIT |
EBIT/margin | EBIT/Revenue |
ROE | Net Profit Margin * Equity Turnover
ROA * Financial Leverage
Net Profit Margin * Asset Turnover * Financial Leverage |