Management >> Accounting >> Marginal Cost

Liquidity Analysis Ratios

1 . Current ratio

Current Assets 

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Current Liabilitites

(Cash, debtors receivable, bank acc, Inventory)  

2 Quick Ratio:

    Quick Assets

=  ------------------------ 
    Current Liabilities
(No inventory)

3 Net Working Capital Ratio 

Net Working Capital

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Total Assets.

4. Acid Test Ratio

Profit Analysis Ratio

1. Return on Assets (ROA)

 Net Income
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Aveg Total Assets

 Aveg total assets = 

starting Assets +Ending Assets
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               2
2. Return on Equity(ROE)

 Net Income

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Aveg. Stockholders’ equity

3. Return on Common Equity(ROCE)

 Net Income

------------
Aveg Common stockholder’s equity

4. Profit margin

 Net Income

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Sales

5. Earning per share (EPS)

Net Income

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No. of commons shares outstanding

Activity Analysis Ratio

1. Assets turnover ratio

 Sales

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Aveg total assets

2. Acc.receivable turnover ratio

 Sales

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Aveg acc receivable

  
3. Inventory Turnover ratio:

 Cost of goods sold

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Aveg Inventories 

Capital Structure Analysis Ratio

1. Debt to Equity Ratio

Total liabilities

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Total stockholder’s equity

2. Investment coverage ratio

Income b4 interest and IT expenses

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Interest expense

Capital Market Analysis Ratio
1. Price Earning Ratio (PE)

Market price of common stock per share

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Earning per share

2. Market to Book ratio

Market price of common stock per share
--------
Book value of equity per common share

3. Dividend yield

Annual dividends per common share

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Market price of equity per common stock per share

4. Divident payout ratio

Cash dividends 

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net income