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Financial Ratios Formula Key
Liquidity Ratios
Current Ratio = Total Current Assets / Total Current Liabilities
Quick Ratio = (Cash + Accounts Receivable) / Total Current Liabilities
Working Capital = Total Current Assets - Total Current Liabilities
Financial Leverage / Coverage Ratios Debt-to-Equity Ratio = Total Liabilities / Total Equity
Estimated Debt Service* = Current Long Term Debt + Interest
Debt Service Coverage Ratio*
= EBITDA / Debt Service
Interest Coverage Ratio = EBITDA / Interest Expense Senior Debt to Cash Flow* = Senior Debt / EBITDA Debt to Cash Flow* = Long Term Liabilities / EBITDA
Debt to Capitalization = Total Liabilities / (Total Liabilities + Total Equity)
Profitability Ratios Operating Profit Margin = Operating Profit / Sales
Net Profit Margin = Adjusted Net Profit before Taxes / Sales
Return on Equity* = Net Income / Total Equity Return on Assets* = Net Income / Total AssetsActivity / Efficiency Ratios
Accounts Receivable Days* = (Accounts Receivable / Sales) * 365
Accounts Payable Days* = (Accounts Payable / COGS) * 365 Inventory Days* = (Inventory / COGS) * 365 Fixed Asset Turnover* = Sales / Gross Fixed Assets
* These formulas have been scaled to approximate annual statistics