Financial Ratio Formulas Page 2
ADVERTISEMENT
1
2
3Net income
Net profit margin
=
Sales
4.
Activity
Cost
of
goods
sold
Inventory
turnover
=
Inventory
Sales
on
credit
Accounts
receivable
turnover
=
Accounts
receivable
Sales
Total
asset
turnover
=
Total
assets
Sales
Fixed
asset
turnover
=
Fixed
assets
5.
Financial leverage
Total
debt
Total
debt
to
assets
ratio
=
Total
assets
Long
-
term
debt
Long
-
term
debt
to
assets
ratio
=
Total
assets
Total
debt
Total
debt
to
equity
ratio
=
Total
shareholde
rs'
equity
Total assets
Equity multiplier =
Shareholders' equity
Earnings
before
interest
and
taxes
Times
-
interest
-
coverage
ratio
=
Interest
Earnings
before
interest
and
taxes
+
Lease
payment
Fixed
-
charge
coverage
ratio
=
Interest
+
Lease
payment
Financial ratio formula sheet, prepared by Pamela Peterson-Drake
2
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Business