FINANCIAL STATEMENT ANALYSIS

Classification Of Financial Ratios

Liquidity Ratios
Activity Ratios
Leverage Ratios
Profitability Ratios
Valuation Ratios

CA
Current Ratio --------------------------

CL
LA*
Acid Test Ratio = ----------------------

CL**

LA*: All CA Except Inventories & prepaid Expenses.

CA**: All CL Except Bank OD.

COGS
Inventory Turn-Over Ratio = ---------------------------------Avg. Inventory

Net Sales
Fixed Asset Turnover Ratio = -------------------------------------------------------Avg. Fixed Assets Excluding Investments

Net Credit Sales

Receivable Turnover Ratio = -------------------------------------------------Avg. Receivables

Total Asset Turnover Ratio

Debt Ratio

Debt-Equity Ratio

Interest Coverage Ratio

Net Sales
---------------------------------------------Avg. Total Assets Excl. Investment

Total Assets
---------------------------------------------Total Debt

Long term Debt

---------------------------------------------Total Equity

EBIT
---------------------------------------------Interest Expense

EBIT + Dep. + ONCE + LR

Cash Flow Coverage Ratio= ----------------------------------INT. + LR + SFA (1t)
Gross Profit
Gross Profit Margin Ratio = -------------------------------Sales

Net Profit After Tax

Net Profit Margin Ratio = ------------------------------------Net Sales
EBIT (1- t)
Modified Net Profit Margin Ratio = -----------------------Net Sales

Operating Exp.
Operating Expense Ratio = ----------------------------Net Sales

EBIT (1-t)
EBIT (1-T)
Return on Investment = ---------------- or ----------------Avg. TA
Avg. TNA
OR

EBIT
EBIT
= ---------------- or ---------------Avg. TA
Avg. TNA

Net Profit after tax

Return on Equity = -----------------------------------------------------Avg. Equity
Net Earnings
Earning Per Share = --------------------------------------------------------------No. of outstanding Shares.
Dividend Per Share
Dividend Yield = --------------------------------------------------------------------Market Price Per Share
Net Worth
Book Price Per Share = ----------------------------------------------------------No. of Outstanding Shares.

Market Value Per Share

Market Value to Book Value Ratio= --------------------------------Book Value Per Share
Market Price Per Share
Earning Price Ratio = --------------------------------------------------Earning Price Per Share
Price Earning Ratio
Price Earning to Growth Ratio = ------------------------------------EGE