Financial Ratios Formula Key
Financial Ratios Formula Key
Liquidity Ratios
= Total Current Assets / Total
Current Ratio
Current Liabilities
= (Cash + Accounts Receivable)
Quick Ratio
/ Total Current Liabilities
= Total Current Assets - Total
Working Capital
Current Liabilities
Financial Leverage / Coverage
Ratios
Debt-to-Equity Ratio = Total Liabilities / Total Equity
= Current Long Term Debt +
Estimated Debt Service*
Interest
Debt Service Coverage
= EBITDA / Debt Service
Ratio*
Interest Coverage Ratio = EBITDA / Interest Expense
Senior Debt to Cash Flow* = Senior Debt / EBITDA
Debt to Cash Flow* = Long Term Liabilities / EBITDA
= Total Liabilities / (Total
Debt to Capitalization
Liabilities + Total Equity)
Profitability Ratios
Operating Profit Margin = Operating Profit / Sales
= Adjusted Net Profit before
Net Profit Margin
Taxes / Sales
Return on Equity* = Net Income / Total Equity
Return on Assets* = Net Income / Total Assets
Activity / Efficiency Ratios
= (Accounts Receivable / Sales) *
Accounts Receivable Days*
365
Accounts Payable Days* = (Accounts Payable / COGS) * 365
Inventory Days* = (Inventory / COGS) * 365
Fixed Asset Turnover* = Sales / Gross Fixed Assets