case

Financial Ratios

*NOTE: Profit and Income are usually interchangeable; that is the case here.

Gross Profit = Sales – COGS

Operating Profit = Gross Profit – Operating Expenses

Net Profit = Operating Profit – Interest – Taxes

Working Capital = Current Assets – Current Liabilities

Earnings per Share = Net Profit / Shares Outstanding

Profitability Ratios

Gross Profit Margin = Gross Profit / Sales

Operating Profit Margin = Operating Profit / Sales

Net Profit Margin = Net Profit / Sales

Return on Assets = Net Profit / Total Assets

Return on Equity = Net Profit / Shareholders’ Equity

Leverage Ratios

Debt to Equity = Total Liabilities / Shareholders’ Equity

Debt to Assets = Total Liabilities / Total Assets

Interest Coverage = Operating Profit / Interest

Liquidity Ratios

Current Ratio = Current Assets / Current Liabilities

Quick Ratio = (Current Assets – Inventory) / Current Liabilities

Efficiency Ratios

Total Asset Turnover = Sales / Total Assets

PPE Turnover = Sales / PPE

Cash Turnover = Sales / Cash

Working Capital Turnover = Sales / Working Capital

Market Ratios

Price-to-Earnings = Market Price per Share / Earnings per Share

Price-to-Book = Market Price per Share / Book Value per Share

Dividend Yield = Dividends per Share / Market Price per Share

Dividend Payout = Dividends per Share / Earnings per Share

Miscellaneous

Sales Growth = (New Sales – Old Sales) / Old Sales