ratio

1. CMA , IFRDIP
May 2023
Mohamed Samir Rashed
in 1 PDF
Financial
Ratios

2. Mohamed Samir Rashed
Profitability Ratios
Liquidity Ratios
Efficiency Ratios
Debt Ratios
Market Value Ratios
The Content

3. Mohamed Samir Rashed
Profitability Ratios

4. Mohamed Samir Rashed
Gross Profit Margin
Defination
Measures the percentage of
revenue retained after
deducting direct production
costs.
Formula
(Gross Profit / Revenue) * 100%

5. Mohamed Samir Rashed
Net Profit Margin
Defination
Evaluates the percentage of
revenue remaining after
deducting all expenses,
including taxes and interest.
Formula
(Net Income / Revenue) * 100%

6. Mohamed Samir Rashed
Return on Assets
(ROA)
Defination
Indicates the company's
profitability relative to its
total assets.
Formula
(Net Income / Total Assets) * 100%

7. Mohamed Samir Rashed
Return on Equity
(ROE)
Defination
Measures the return earned on
shareholders' equity
investment.
Formula
(Net Income /
Shareholders' Equity) * 100%

8. Mohamed Samir Rashed
Earnings per Share
(EPS)
Defination
Shows the portion of earnings
attributable to each
outstanding share.
Formula
(Net Income - Preferred Dividends)
/ Weighted Average Common Shares

9. Mohamed Samir Rashed
Liquidity Ratios

10. Mohamed Samir Rashed
Current Ratio
Defination
Assesses a company's ability to
meet short-term obligations
using its current assets.
Formula
Current Assets / Current Liabilities

11. Mohamed Samir Rashed
Quick Ratio
Defination
Measures the company's
ability to pay short-term
liabilities without relying on
the sale of inventory.
Formula
(Current Assets - Inventory) /
Current Liabilities

12. Mohamed Samir Rashed
Cash Ratio
Defination
Indicates the company's ability
to cover immediate liabilities
with its available cash.
Formula
Cash and Cash Equivalents /
Current Liabilities

13. Mohamed Samir Rashed
Working
Capital Ratio
Defination
Evaluates the adequacy of a
company's working capital to
support its operations.
Formula
Current Assets / Current Liabilities

14. Mohamed Samir Rashed
Operating Cash
Flow Ratio
Defination
Measures the company's
ability to generate cash from
its core operations to meet
short-term obligations.
Formula
Operating Cash Flow / Current
Liabilities

15. Mohamed Samir Rashed
Efficiency Ratios

16. Mohamed Samir Rashed
Inventory
Turnover
Defination
Evaluates the number of times
inventory is sold and replaced
within a specific period.
Formula
Cost of Goods Sold / Average
Inventory

17. Mohamed Samir Rashed
Accounts Receivable
Turnover
Defination
Measures the efficiency of
collecting accounts receivable
from customers.
Formula
Net Credit Sales / Average Accounts
Receivable

18. Mohamed Samir Rashed
Asset Turnover
Defination
Indicates how efficiently a
company utilizes its assets to
generate revenue.
Formula
Revenue / Average Total Assets

19. Mohamed Samir Rashed
Fixed Asset
Turnover
Defination
Measures the efficiency of a
company's fixed assets in
generating revenue.
Formula
Revenue / Average Fixed Assets

20. Mohamed Samir Rashed
Payable Turnover
Defination
Evaluates the efficiency of
paying off suppliers and trade
payables.
Formula
Purchases / Average Accounts
Payable

21. Mohamed Samir Rashed
Debt Ratios

22. Mohamed Samir Rashed
Debt-to-Equity
Ratio
Defination
Indicates the proportion of a
company's financing that
comes from debt relative to
equity.
Formula
Total Debt / Shareholders' Equity

23. Mohamed Samir Rashed
Debt Ratio
Defination
Measures the percentage of a
company's assets financed by
debt.
Formula
Total Debt / Total Assets

24. Mohamed Samir Rashed
Interest Coverage
Ratio
Defination
Measures the company's
ability to cover interest
expenses with its earnings.
Formula
EBIT / Interest Expense

25. Mohamed Samir Rashed
Debt Service
Coverage Ratio
Defination
Evaluates a company's ability
to meet its debt obligations
from its operating income.
Formula
Operating Income / Debt Payments

26. Mohamed Samir Rashed
Equity Ratio
Defination
Indicates the proportion of a
company's assets financed by
shareholders' equity.
Formula
Shareholders' Equity / Total Assets

27. Mohamed Samir Rashed
Market Value Ratios

28. Mohamed Samir Rashed
Price-to-Earnings
Ratio (P/E Ratio)
Defination
Compares the company's stock
price to its earnings,
indicating investor sentiment.
Formula
Market Price per Share / Earnings
per Share (EPS)

29. Mohamed Samir Rashed
Price-to-Sales Ratio
(P/S Ratio)
Defination
Evaluates the company's stock
price relative to its revenue
generated per share.
Formula
Market Price per Share / Revenue
per Share

30. Mohamed Samir Rashed
Dividend Yield
Defination
Measures the return on
investment through dividends
relative to the stock price.
Formula
Dividend per Share / Market Price
per Share

31. Mohamed Samir Rashed
Price-to-Book Ratio
(P/B Ratio)
Defination
Compares the market value of
a company's shares to its book
value, reflecting investor
perception.
Formula
Market Price per Share / Book Value
per Share

32. Mohamed Samir Rashed
Market
Capitalization
Defination
Represents the total market
value of a company's
outstanding shares.
Formula
Market Price per Share * Total
Outstanding Shares

33. Mohamed Samir Rashed
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