These are the most important financial ratios formulas you can use to analyze any business:
- current ratio
- absolute ratio
- quick ratio
- the accounts receivable turnover ratio
- the accounts payable turnover ratio
- inventory turnover ratio
- debt to assets ratio
- debt to equity ratio
- interest coverage ratio
- gross profit margin ratio
- operating profit margin ratio
- return on capital employed ratio
- return on equity ratio
- Earnings Per Share
- Price/Earnings Ratio
Contents
- What is a current ratio?
- What is a quick ratio?
- What is the absolute ratio?
- What is the accounts receivable turnover ratio?
- What is the accounts payable turnover ratio?
- What is the inventory turnover ratio?
- What is a debt to assets ratio?
- What is a debt to equity ratio?
- What is the interest coverage ratio?
- What is a gross profit margin?
- What is an operating profit margin?
- What is a return on capital employed?
- What is the return on equity?
- What is the earning per share ratio formula?
- What is the price/earnings ratio formula?
What is a current ratio?
What is a quick ratio?
What is the absolute ratio?
What is the accounts receivable turnover ratio?
What is the accounts payable turnover ratio?
What is the inventory turnover ratio?
What is a debt to assets ratio?
What is a debt to equity ratio?
What is the interest coverage ratio?
What is a gross profit margin?
What is an operating profit margin?
What is a return on capital employed?
What is the return on equity?
This is given by:
(Net Income – Preferred Dividends) / Weighted Average Number of Common Shares
What is the price/earnings ratio formula?
This is given by:
(Net Income – Preferred Dividends) / Weighted Average Number of Common Shares
Read Next:
- The Three Most Important Financial Ratios for the Manager
- What Is a Financial Ratio? The Complete Beginner’s Guide to Financial Ratios
- What Is the Inventory Turnover Ratio? How Inventory Efficiency Can Fuel Business Growth
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