Financial Ratio Formulas

Formula Key

Current Ratio = Total Current Assets / Total Current Liabilities
Quick Ratio = (Cash + Accounts Receivable) / Total Current Liabilities
Gross Profit Margin = Gross Profit / Sales
Net Profit Margin = Adjusted Net Profit before Taxes / Sales
Inventory Days = (Inventory / COGS) * 365
Accounts Receivable Days = (Accounts Receivable / Sales) * 365
Accounts Payable Days = (Accounts Payable / COGS) * 365
Interest Coverage Ratio = EBITDA / Interest Expense
Debt-to-Equity Ratio = Total Liabilities / Total Equity
Debt Service Coverage Ratio = EBITDA / (Prior Period CPLTD + Interest Expense)
Return on Equity = Net Income / Total Equity
Return on Assets = Net Income / Total Assets
Gross Fixed Asset Turnover = Sales / Gross Fixed Assets
Sales per Employee = Sales / Total Employees (FTE)
Profit per Employee = Adjusted Net Profit before Taxes / Total Employees (FTE)
Profit Growth = (Current Period Adjusted Net Profit before Taxes – Prior Period Adjusted Net Profit Before Taxes) / Prior Period Adjusted Net Profit before Taxes
Sales Growth = (Current Period Sales – Prior Period Sales) / Prior Period Sales

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