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Liquid/SolvencRatios
Accounting Liquidity and Solvency Ratios
| Term | Definition |
|---|---|
| Current Ratio | Current Assets / Current Liabilities |
| Acid Test Ratio | Cash + Short term investments + current receivables / current liabilities |
| Accounts Receivable Turnover | Net Sales / Average Accounts Receivable |
| Inventory Turnover | Cost of goods sold / average inventory |
| Days sales uncollected | (Average Accounts Receivable / Net Sales) x 365 |
| Days Sales In Inventory | (Ending Inventory / Cost of goods sold) x 365 |
| Total Asset Turnover | Net Sales / Average Total Assets |
| Debt Ratio | Total Liabilities / Total Liabilities & Equity |
| Equity Ratio | Total Equity / Total Liabilities & Equity |
| Debt to Equity Ratio | Total Liabilities / Total Equity |
| Times Interest Earned | Income Before Interest & Taxes / Interest Expense |
| Profit Margin | Operating Income / Net Sales |
| Price to Earnings Ratio | Market Price Per Common Share / Earnings per share |
| Dividend Yield | Annual Cash Dividends per share / Market price per share |
| Earnings Per Share | Net Income / average common shares |
| Gross Profit Percent | (Net Sales - Cost of goods sold) / Net Sales |
| Return on Equity | Net Income/ Average Shareholder's Equity |
| Return on Assets | Net Income/ Average Total Assets |
| Equity Multiplier | Total Assets / Shareholder's Equity |