RATIO ANALYSIS

FINANCIAL RATIO ANALYSIS

Profitability Ratios

Profit Margin
Profit Margin = (Net Income/Sales)

Return on Assets
Return on assets = (Net Income/Total Assets)

Return on Equity
Return on Equity = (Net Income/Total Equity)

Asset Utilization Ratios

Receivables Turnover
Average Collection Period
Inventory Turnover
Fixed Asset Turnover
Total Asset Turnover

Liquidity Ratios

Current Ratio
Current Ratio = (Current Assets/Current Liabilites)

Quick Ratio
Quick Ratios = (Current Assets-Inventories)/Current Liabilities

Super Quick Ratio
Super Quick Ratio = Cash/Current Liabilities

Debt Utilization Ratios
Debt to total assets
times interest earned
Fixed charged coverage