4/7/2018 Common Financial & Accounting Ratios & Formulas Cheat Sheet by Davidpol - Download free from Cheatography

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Common Financial & Accounting Ratios & Formulas Cheat Sheet by

Davidpol

 accounting

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Introduction
Accounting ratios are widely used tools of financial analysis. If properly analyzed, they help identify areas on the financial statement needing further
analysis.

A ratio is a mathematical relation between two quantities expressed as a percentage, a rate or proportion.

Short Term Solvency or Liquidity Ratios

Current Ratio = Current Assets / Current Liabilities
Quick Ratio = (Current Assets – Inventory) / Current Liabilities
Cash Ratio = Cash / Current Liabilities
Net Working Capital = Net Working Capital / Total Assets
Internal Measure = Current Assets / Average Daily Operating Costs
Percentage of Debt to Asset Formula = Long Term Liabilities ⁄ Total Assets x 100%
Debt to Equity Ratio Formula = Total Liabilities ⁄ Total Equity

Long Term Solvency or Financial Leverage Ratios

Total Debt Ratio = (Total Assets – Total Equity) / Total Assets
Debt to Equity Ratio = Total Debt / Total Equity
Equity Multiplier = Total Assets / Total Equity
Long Term Debt Ratio = Long Term Debt / (Long Term Debt + Total Equity)
Times Interest Earned = Earnings before Interest & Taxes / Interest
Cash Coverage Ratio = (Earnings before Interest & Taxes + Depreciation) / Interest

Asset Use or Turnover Ratios

Inventory Turnover = Cost of Goods Sold / Inventory
Days’ Sales in Inventory = 365 days / Inventory Turnover
Receivables Turnover = Sales / Accounts Receivable
Days’ Sales in Receivables = 365 days / Receivables Turnover
Net Working Capital (NWC) Turnover = Sales / Net Working Capital
Fixed Asset Turnover = Sales / Net Fixed Assets 
Total Asset Turnover = Sales / Total Assets Think you can make a better cheat sheet?
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Profitability Ratios
Profit Margin = Net Income / Sales
Return on Assets (ROA) = Net Income / Total Assets
Return on Equity (ROE) = Net Income / Total Equity
ROE = (Net Income / Sales) x (Sales / Assets) x (Assets / Equity)

Market Value Ratios

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

Cash Flow Ratios

Cash Flow Solvency Ratio Formula = Actual Cash Flow from Operations ⁄ Total Liabilities
Cash Flow Margin Ratio Formula = Actual Cash Flow from Operations ⁄ Revenues from Sales
Cash flow ROA Ratio Formula = Actual Cash Flow from Operations ⁄ Average Total Assets

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Accounting Ratios & Formulas Cheat Sheet Sheet!
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Comments Cheatographer
NatalieMoore, 02:21 8 Nov 15 Davidpol

Very useful :)

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Published: 3rd July, 2015

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