1, current ratio = current assets ÷ current liabilities
2, quick ratio = quick assets ÷ current liabilities
conservative quick ratio = (cash + short-term securities + notes receivable + accounts receivable, net) ÷ current liabilities
3, the business cycle = inventory turnover days + accounts receivable turnover days
4, inventory turnover ( times) = cost of goods sold ÷ average inventory where: average inventory = (inventory at the beginning of the year + inventory at the end of the year) ÷ 2
Inventory turnover days = 360/inventory turnover = (average inventory × 360) ÷ cost of goods sold
5, accounts receivable turnover (times) = sales revenue ÷ average accounts receivable
Where: sales revenue is the net amount after deducting discounts and concessions; accounts receivable are the Net; accounts receivable is the amount before deducting the provision for bad debts
Accounts receivable turnover days = 360 ÷ accounts receivable turnover = (average accounts receivable × 360) ÷ net sales revenue
6, current assets turnover (times) = sales revenue ÷ average current assets
7, total assets turnover = sales revenue ÷ average total assets
8, gearing ratio = (total liabilities ÷ total assets) × 100% (also known as the debt to business ratio)
9, equity ratio = (total liabilities ÷ shareholders' equity) × 100% (also known as the debt-to-equity ratio)
10, tangible net worth debt ratio = [total liabilities ÷ (shareholders' equity - intangible assets net worth)] × 100%
11, earned interest multiple = EBITDA ÷ interest expense
Long-term debt to working capital ratio = long-term debt ÷ (current assets - current liabilities)
12, net sales margin = (net profit ÷ sales revenue) × 100%
13, gross sales margin = [(sales revenue -cost of sales) ÷ sales revenue] × 100%
14, net asset margin = (net profit ÷ average total assets) × 100%
15, return on net assets = net profit ÷ average net assets (or net assets at the end of the year) × 100%
Or = net profit margin on sales × asset turnover × equity multiplier
16. Equity Multiplier = Total Assets ÷ Total Owners' Equity = 1 ÷ (1 - Gearing Ratio) = 1 + Equity Ratio
17. Average Number of Common Shares Issued and Outstanding = ∑ (Number of Common Shares Issued and Outstanding × Number of Months Issued and Outstanding) ÷ 12
18. Earnings Per Share = Net Income ÷ Total Number of Common Shares at the End of the Year = ( Net Income - Preferred Dividends) ÷ (Total Number of Shares at Year-End - Number of Preferred Shares at Year-End)
19. Price-Earnings Ratio (Multiple) = Market Price per Common Share ÷ Earnings Per Share
20. Cash-to-Maturity-Debt Ratio = Net Cash Inflow from Operations ÷ Debt Maturing in the Current Period (refers to the current maturity of long term debt versus the current maturity of notes payable)
Cash Current Debt Ratio = Net Operating Cash Inflow ÷ Current Liabilities
Cash Total Debt Ratio = Net Operating Cash Inflow ÷ Total Debt (calculates the company's maximum capacity to incur debt)
21. Cash on Sales Ratio = Net Operating Cash Inflow ÷ Sales
Operating Net Cash Flow per Share = Net Operating Cash Inflow ÷ Number of Common Shares
Cash Recovery Ratio on All Assets = Net Operating Cash Inflow ÷ All Assets x 100%
22. Cash to Investment Ratio = Net Cash Inflow from Operating Activities in the Last 5 Years ÷ Sum of Capital Expenditures, Increase in Inventory, and Cash Dividends in the Last 5 Years
Cash Dividend Guarantee Multiple = Net Operating Cash Inflow per Share ÷ Cash Dividends per Share
23. Net Earnings Operational Index = Operating Net Income ÷ Net Income = (Net Income - Non-Operating Income) ÷ Net Income
Cash Operating Index = Net Cash Flow from Operations ÷ Cash Received from Operations (Cash Received from Operations = Net Income from Operating Activities + Non-Cash Expenses)
How much does it cost to represent a company in bookkeeping? Find Mandel Enterprise Services assured that the company agency safe and efficient, tax consultants professional, Mandel Enterprise Services one-stop service experts.