Liquidity/Short-term Solvency Ratios

Results: in # of times, P, %
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Name of Ratio
Current Ratio
Quick/Acid-Test Ratio
Cash Ratio/Cash Flow Ratio
Cash Ratio
Operating Cash Flow Ratio
Cash Debt Coverage Ratio
Working Capital
Working Capital Ratio
WC from operation / TL
Accounts Payable (AP)
Turnover (TO) Ratio
AP TO Ratio
Debt Income Ratio
Long-term Debt Income Ratio
Defensive Interval Ratio

15. Interval Ratio

Formula
Current Assets (CA) / Current Liabilities (CL)
CA - (Inventories + Prepayments) / CL
[Cash + Marketable Securities (MS)] / CL
[Cash + Cash Equivalents (CE)] / CL
Operating Cash Flow (OCF) / Total Liabilities (TL)
(OCF - Dividend) / TL
CA - CL
Working Capital (WC) / Total Assets (TA)
WC from operations / TL
Sales / AP

Unit

#,P
#

Total Supplier Purchases / Ave. AP

TL / Net Income (NI)
Long-term Debt (LTD) / NI
[Cash + MS + Accounts Receivable (AR)] / Ave. Daily Purchases or
Expenses
NI / LTD (switch no. 13)

Efficiency/Activity/Turnover/Asset Mngt/Asset Utilization Ratios

Results: in # of times (X) and days (D)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.

Name of Ratio
Fixed Assets TO
Current Assets TO
Total Assets TO
Working Capital TO
Work-in-process (WIP) TO
Raw Materials TO
Cash TO
AR TO
Inventory TO
Daily Sales Outstanding
(DSO)
Daily Inventory Outstanding
(DIO)
Daily Purchases Outstanding
(DPO)
Cash Conversion Cycle or
Operating Cycle
Cash Balance Ratio
Days of Liquidity Ratio
Degree of Leverage
Bad Debt Ratio
Cash Dividend Coverage
Ratio (CR)
Cash Maturity CR
Fixed Charge CR
Cash Reinvestment Ratio
Operating Cycle Ratio
Margin of Safety
Operating Costs to Sales

Formula
Sales / Net Fixed Assets
Sales / CA
Sales / TA
Sales / WC
Cost of Goods Sold (CGS) / WIP
Raw Materials (RM) Used / RM
Sales / Cash
Sales / AR
CGS / Inventory

Unit
X
X
X
X
X
X
X
X
X

AR / Ave. Daily Sales

Inventory / Ave. Daily CGS

AP / Ave. Daily Purchases

DSO + DIO - DPO

Cash / Ave. Daily CGS

Quick Assets / Ave. Daily Cash Expenses
% change in net operating income / % change in sales
Bad Debts / AR
OCF / Dividends
(OCF - Dividend) / Current portion of LTD
[NI before interest and tax + fixed charge (FC)] / FC
[Increase in Fixed Assets and WC] / [NI + depreciation (depn)]
Age of Inventory / Collection Period
(Expected Sales - Breakeven Sales) / Breakeven Sales
Operating Costs / Sales

25. Receivables to Sales

26. Inventory to Sales Ratio

AR / Sales
Inventory / Sales
Profitability/Performance Ratios
Results: in Peso, times, %

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.

Name of Ratio
Gross Profit Margin
Operating Profit Margin
Net Profit Margin (NPM)
Return on (RO) Sales
RO Assets
RO Equity
Leverage / Equity Multiplier
(EM)
RO Net Assets
RO Capital Employed
RO Investment
RO Capital
Risk Adjusted RO Capital
Cash Flow RO Investment
Cash Flow RO Asset
Cash Return to SHE
Efficiency Ratio
Effective Tax Rate
Expense Ratio
Net Gearing
BEP Ratio
Contribution Margin Ratio

Formula
Gross Profit / Sales
Operating Income or Earnings before Interest and Taxes (EBIT) / Sales
NI / Sales
NI / Sales
NI / TA or NPM x TAT
NI / Shareholders Equity (SHE) or RO Assets x EM

Unit

TA / SHE
NI / Fixed Assets + WC
EBIT / Capital Employed
NI / Investment or like Nos. 7 & 8
[EBIT (1-Tax rate)] / Invested Capital
Expected Return / Value at risk or economic capital
Cash Flow / Market Recapitalization
OCF / TA
OCF / SHE
Non-interest Expense / Revenue
Income Tax Expense / Pretax Income
Expense / Sales
Net Liabilities / SHE
EBIT / TA
(Sales - Variable Costs) / Sale

Solvency/Leverage/Coverage/Stability/Debt/Capital Structure/Debt Mngt Ratios

Results: in # of times, P, %
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.

Name of Ratio
Debt Ratio
Debt to Equity Ratio
LTD to Equity Ratio
Times Interest Earned (TIE)
ratio/Interest Coverage Ratio
Debt Service CR
CF to Debt Ratio
Capitalization Ratio or Capital
Structure Ratio
Equity Ratio
Gearing Ratio
Ratio of CA to proprietors
fund
Fixed Assets to net worth
FA ratio or FA to LT funds
Capital employment ratio
Capital to NCA
Cash and MS to WC
NCA to NCL
Retained Earnings (RE) to TA
Std to Debt

Formula
TL / TA
TL / SHE
LTD / TA
EBIT / Interest Expense or NI / Interest Expense
Net operating income / Total Debt Service
Operating CF / TL
LTD / (LTD + SHE)
SHE / TA
LTD / SHE
CA / SHE
FA after depn / SHE
FA after depn / LT funds
Sales / SHE - non operating assets
SHE / NCA
(Cash + MS) / WC
NCA / NCL
RE / TA
(STD + Current Portion of LTD) / TL

Unit

Market Ratios
Name of Ratio
1. Plowback ratio or Retention
Ratio
2. Payout ratio
3. Dividend cover
4. Dividend yield
5. PEG Ratio
6. P/E ratio
7. P/CF ratio
8. P/BV ratio
9. BV per Share
10. Price / Sales Ratio
11. EV/EBITDA or enterprise
value multiple
12. EV/sales
13. EVA
14. EVA
15. MVAR
16. Tobins ratio
17. Market Capitalization
18. IGR
19. SGR

Formula
1 - dpr or [Retained Earnings / (ES Basic)] x 100
Dividend / Earnings per Share (EPS)
EPS / Dividend per share
Dividend / Current Market Price
Price per earnings / Annual EPS growth
Market Price per share / Diluted EPS
Market Price per Share / PV of OCF per share
Market Price per Share / Book Value price per share
Common equity / Shares Outstanding
Market Price per Share / Gross Sales
Enterprise value / EBITDA
Enterprise value / Net sales
EBIT(1-Tax rate) - [(Total investors capital) x After tax cost of capital]
EC x [(NI/EC) - cost of EC]
Market value of Equity - BV of Equity
Replacement Value / BV
Ordinary Shares / Market Price
RE/TA
ROE x RR / [1 - (ROE x RR)]

Unit