15 Financial Ratios Formulas To Analyse Any Business

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

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Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"

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