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Freeman Ratios
| Question | Answer |
|---|---|
| Gross Profit Percentage | Gross Profit (Net Sales - COGS) / Net Sales |
| Quick Ratio | Cash + Marketable Securities + AR / Current Liabilities |
| Quality of Income Ratio | Cash flow from operating activities / net income |
| Capital Acquisitions Ratio | Cash flow from operating activities / cash paid for PPE |
| Receivables Turnover | Net Sales / Average Net. AR |
| Average Collection Period | 365 / Receivables Turnover |
| Fixed Asset Turnover Ratio | Net Sales / Average fixed assets |
| Inventory Turnover Ratio | COGS / Average Inventory |
| Accounts Payable Turnover | COGS / Average Accounts Payable |
| Earnings per share | Net Income / Average number of shares outstanding |
| Debt-to-Equity | Total Liabilities / Stockholders Equity |
| Times Interest Earned | Net Income + Interest Expense + Income Tax Expense / Interest Expense |
| Economic Return from Investing | Dividends and interest received + change in fair value / Fair value of investments (beginning of period) |
| Dividend Yield | Dividends per share / market price per share |