FINANCIAL RATIOS

1. Liquidity

i. Current ratio = Current assets ÷ Current liabilities

ii. Quick ratio = Total quick assets ÷ Current liabilities

iii. Cash ratio = Total cash assets ÷ Current liabilities

2. Asset management

i. Inventory turnover = Cost of sales include occupancy cost ÷ Inventories

ii. Receivables turnover = Net revenues ÷ Accounts receivables, net

iii. Payables turnover = Cost of sales including occupancy cost ÷ Accounts payable

iv. Working capital turnover = Net revenues ÷ Working capital

v. Average inventory processing period = 365 ÷ Inventory turnover

vi. Average receivables collection period = 365 ÷ Receivables turnover

vii. Operating cycle = Average inventory processing period + Average receivables collection
period

viii. Average payables payment period = 365 ÷ Payables turnover

ix. Cash conversion cycle = Average inventory + Average receivables – Average payables

x. Net fixed asset turnover = Net revenues ÷Property, plant and equipment, net

xii. Total asset turnover = Net revenues ÷ Total assets

xiii. Equity turnover = Net revenues ÷ Shareholders’ equity

3. Debt management

i. Debt to equity = Total debt ÷ Shareholders’ equity

ii. Debt to capital = Total debt ÷ Total capital

iii. Interest coverage = EBIT ÷ Interest expense

4. Profitability

i. Gross profit margin = 100 x Gross profit ÷ Net revenues

ii. Operating profit margin = 100 x Operating income (loss) ÷ Net revenues

iii. Net profit margin = 100 x Net earnings attributable ÷ Net revenues

iv. Return in equity (ROE) = 100 x Net earnings attributable ÷ Shareholders’ equity

v. Return on asset (ROA) = 100 x Net earnings attributable ÷ Total assets

5. Market value

i. Price to earnings (P/E)

EPS = Net earnings attributable ÷ No. shares of common stock outstanding

P/E = Share price ÷ EPS

ii. Price to operating profit (P/OP)

Operating profit per share = Operating income (loss) ÷ No. shares of common stock
outstanding

P/OP = Share price ÷ Operating profit per share

iii. Price to sales (P/S)

Sales per share = Net revenues ÷ No. shares of common stock outstanding

P/S = Share price ÷ Sales per share

iv. Price to book value (P/BV)

BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding

P/BV = Share price ÷ BVPS