This document lists formulas for various financial ratios used to analyze a company's liquidity, capital structure, solvency, return on investment, operating performance, and asset utilization. Ratios included are the current ratio, quick ratio, cash flow margin ratio, collection period, inventory turnover, debt-to-equity ratio, times interest earned, return on capital employed, gross profit ratio, and total assets turnover among others. Formulas provided calculate metrics like current assets to current liabilities, EBITDA to debt payments, net income to average assets, and sales relative to working capital.

1. Ratios and Formulas

2. Short term Liquidity Ratios Formulas
Current ratio Current asset / Current Liabilities
Ratio (Exclude debts) (Current asset - Debts)/ Current liabilities
Quick ratio (Current asset - Stocks)/ Current liabilities
Cash flow margin ratio Net Operating cash flow / Current liabilities
Collection period (Avg Receivables / Sales) x 360
Days to sell / inventory turnover (Avg Stock / Sales) x 360
Cash flow to sales Net Operating Cash flow / Sales
Cash to current liabilities Cash & Bank / Current liabilities
Debt turnover ratio Sales / Avg Receivables
No. of days in receivables 360 / Debt turnover
Stock turnover Ratio Cost of sales / Avg Stock
No. of Days in inventory turnover 360 / Stock turnover
Creditor turnover ratio Cost of Sales or Purchase / Avg Payables
No. of days in Creditors 360 / Creditors turnover
Cash Conversion Cycle
Debtor turnover Days + Stock turnover
Days - Creditor turnover Days

3. Capital Structure and Solvency Formulas
Total Debt to Total Equity % Total Borrowing / (Total Borrowing +Equity)
Total Debt to Total Equity (Times) Total Borowing / Equity
Total Liability to Total Assets %
Total Liabilities / (Total Liabilities + Total
Assets)
Total Liability to Total Assets (Times) Total Liabilities / Total Assets
Total Liability to Total Equity % Total Liabilities / (Total Liabilities +Equity)
Total Liability to Total Equity (Times) Total Liabilities / Equity
Long term Debt to Total equity %
Long term Borrowing / (Long term Borrowing
+Equity)
Long term Debt to Total equity (Times) Long term Borrowing / Equity
Debt Service Coverage
EBITDA / (Finance cost + current portion of
long term debt)
*EBITDA = Income before Finance cost, tax
and depreciation amortization
Times interest earned EBIT / Finance Cost

4. Return on investment ratios Formulas
Return on capital employed EBIT / (Total assets - Current liabilities)
Return on Total Assets Net Income / Avg Total Assets
Return on Common equity Net Income / Avg Equity
Operating performance ratios Formulas
Gross profit ratio Gross Profit / Sales
Operating profit to sales Operating profit / Sales
Pretax profit to sales Pre Tax profit / Sales
Net income to sales Net Income / Sales
Asset utilization ratios Formulas
Sales to cash Sales / Cash & Bank
Sales to Stock Sales / Avg Stock
Sales to Working Capital Sales / (Current assets - Current liabilities)
Fixed Assets Turnover Sales / Fixed assets
Total Assets Turnover Sales / Total assets