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Activity Ratios:
1. Debtor turnover ratio(DTR) = Net credit sales/Average receivables
1a. Average collection period = 360/DTR or12/DTR
2. Creditor’s turnover ratio(CTR)= Credit purchase /Average payables
2a . Average payments period = 360/CTR or 12/CTR
3. Inventory turnover ratio(ITR) = COGS/Average Inventory
3a. Inventory holding period = 360/ITR
4. Asset turnover ratio = sales/total Assets
Current Ratio
Current Assets
Current Ratio = ------------------------
Current Liabilities
Quick Ratio
Quick Assets
Quick Ratio = ----------------------
Current Liabilities
Net Income
Return on Assets (ROA) = ----------------------------------
Average Total Assets
Net Income
Return on Equity (ROE) = --------------------------------------------
Average Stockholders' Equity
Net Income
Return on Common Equity = --------------------------------------------
Average Common Stockholders' Equity
Profit Margin
Net Income
Profit Margin = -----------------
Sales
Net Income
Earnings Per Share = ---------------------------------------------
Number of Common Shares Outstanding
Activity Analysis Ratios
Sales
Assets Turnover Ratio = ----------------------------
Average Total Assets
Sales
Accounts Receivable Turnover Ratio = -----------------------------------
Average Accounts Receivable
Total Liabilities
Debt to Equity Ratio = ----------------------------------
Total Stockholders' Equity
Dividend Yield
Cash Dividends
Dividend Payout Ratio = --------------------
Net Income