FINANCIAL RATIO ANALYSIS FORMULAS
GROWTH RATIOS
Sales Growth = (Current Revenue - Previous Revenue) / Previous Revenue
Income Growth = (Current Income - Previous Income) / Previous Income
Asset Growth = (Current Total Assets - Previous Total Assets) Previous Total Assets
PROFITABILITY RATIOS
Profit Margin = Income / Revenue
Return on Assets = Current Income/ ((Current Total Assets + Previous Total Assets)/2)
Return on Equity = Current Income/ ((Current Total Equity + Previous Total Equity)/2)
Dividend Payout Ratio = Dividends Paid / Net Income
Price Earnings Ratio = Market Price / Earnings Per Share
ACTIVITY RATIOS
Receivable Turnover = Current Revenue / ((Current AR + Previous AR)/2)
Inventory Turnover = Current COGS / ((Current Inventory + Previous Inventory)/2)
Fixed Asset Turnover = Revenue / Net Fixed Assets
LIQUIDITY RATIOS
Current Ratio = CA / CL
Quick Ratio = (Cash + Short Term Investment + AR) / Current Liabilities
SOLVENCY RATIO
Debt to Total Assets = Total Liabilities / Total Assets

FINANCIAL RATIO ANALYSIS FORMULAS.......

  • 1.
    FINANCIAL RATIO ANALYSISFORMULAS GROWTH RATIOS Sales Growth = (Current Revenue - Previous Revenue) / Previous Revenue Income Growth = (Current Income - Previous Income) / Previous Income Asset Growth = (Current Total Assets - Previous Total Assets) Previous Total Assets PROFITABILITY RATIOS Profit Margin = Income / Revenue Return on Assets = Current Income/ ((Current Total Assets + Previous Total Assets)/2) Return on Equity = Current Income/ ((Current Total Equity + Previous Total Equity)/2) Dividend Payout Ratio = Dividends Paid / Net Income Price Earnings Ratio = Market Price / Earnings Per Share ACTIVITY RATIOS Receivable Turnover = Current Revenue / ((Current AR + Previous AR)/2) Inventory Turnover = Current COGS / ((Current Inventory + Previous Inventory)/2) Fixed Asset Turnover = Revenue / Net Fixed Assets LIQUIDITY RATIOS Current Ratio = CA / CL Quick Ratio = (Cash + Short Term Investment + AR) / Current Liabilities SOLVENCY RATIO Debt to Total Assets = Total Liabilities / Total Assets