These are the most important financial ratios formulas you can use to analyze any business:

1. current ratio
2. absolute ratio
3. quick ratio
4. the accounts receivable turnover ratio
5. the accounts payable turnover ratio
6. inventory turnover ratio
7. debt to assets ratio
8. debt to equity ratio
9. interest coverage ratio
10. gross profit margin ratio
11. operating profit margin ratio
12. return on capital employed ratio
13. return on equity ratio
14. Earnings Per Share
15. Price/Earnings Ratio

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?

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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