Here is a handy formula list for some commonly used financial ratios:
Current Ratio:
Current Ratio = Current Assets / Current Liabilities
Quick Ratio:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Debt-to-Equity Ratio:
Debt-to-Equity Ratio = Total Debt / Shareholders' Equity
Debt-to-Asset Ratio:
Debt-to-Asset Ratio = Total Debt / Total Assets
Return on Equity (ROE):
ROE = Net Income / Shareholders' Equity
Return on Assets (ROA):
ROA = Net Income / Total Assets
Gross Profit Margin:
Gross Profit Margin = Gross Profit / Total Revenue
Net Profit Margin:
Net Profit Margin = Net Income / Total Revenue
Price-to-Earnings Ratio (P/E Ratio):
P/E Ratio = Market Price per Share / Earnings per Share
Dividend Yield:
Dividend Yield = Dividend per Share / Market Price per Share
Price-to-Sales Ratio (P/S Ratio):
P/S Ratio = Market Price per Share / Sales per Share
Earnings per Share (EPS):
EPS = Net Income / Number of Shares Outstanding
Price-to-Book Ratio (P/B Ratio):
P/B Ratio = Market Price per Share / Book Value per Share
These formulas are useful for analyzing the financial health and performance of a company, and can help investors make informed decisions. It's important to note that different industries may have different benchmarks and ratios that are more applicable to their specific financial situations.
Answers & Comments
Here is a handy formula list for some commonly used financial ratios:
Current Ratio:
Current Ratio = Current Assets / Current Liabilities
Quick Ratio:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Debt-to-Equity Ratio:
Debt-to-Equity Ratio = Total Debt / Shareholders' Equity
Debt-to-Asset Ratio:
Debt-to-Asset Ratio = Total Debt / Total Assets
Return on Equity (ROE):
ROE = Net Income / Shareholders' Equity
Return on Assets (ROA):
ROA = Net Income / Total Assets
Gross Profit Margin:
Gross Profit Margin = Gross Profit / Total Revenue
Net Profit Margin:
Net Profit Margin = Net Income / Total Revenue
Price-to-Earnings Ratio (P/E Ratio):
P/E Ratio = Market Price per Share / Earnings per Share
Dividend Yield:
Dividend Yield = Dividend per Share / Market Price per Share
Price-to-Sales Ratio (P/S Ratio):
P/S Ratio = Market Price per Share / Sales per Share
Earnings per Share (EPS):
EPS = Net Income / Number of Shares Outstanding
Price-to-Book Ratio (P/B Ratio):
P/B Ratio = Market Price per Share / Book Value per Share
These formulas are useful for analyzing the financial health and performance of a company, and can help investors make informed decisions. It's important to note that different industries may have different benchmarks and ratios that are more applicable to their specific financial situations.
Current Ratio = Current Assets / Current Liabilities
Quick Ratio (Acid-Test Ratio) = (Current Assets - Inventory) / Current Liabilities
Debt-to-Equity Ratio = Total Liabilities / Total Shareholders' Equity
Debt-to-Asset Ratio = Total Liabilities / Total Assets
Gross Profit Margin = Gross Profit / Sales
Net Profit Margin = Net Profit / Sales
Return on Assets (ROA) = Net Income / Total Assets
Return on Equity (ROE) = Net Income / Shareholders' Equity
Price to Earnings Ratio (P/E Ratio) = Market Price per Share / Earnings per Share
Dividend Yield Ratio = Annual Dividends per Share / Market Price per Share
There is more but I forgot