Financial Statement Analysis

Profitability Ratios

Activity Ratios

Solvency and Leverage Ratios

Market related and dividend ratios

Efficiency/Productivity Ratios

Dupont Ratio

Gross Profit Margin

Gross Profit
Total Sales
Return on Asset
PAT
Average total asset
Operating Profit Margin
PBIT
Sales
Return on Capital Invested
PBIT
Total long term liability/(Total right hand side - current liability)
Return on Equity
PAT
Stockholders Equity
Earnings per share (EPS)
Net Income - Preferred Stock Dividends
Number of shares of common stock + Equivalent
Net Profit
PAT
Revenue

22.60%
2250
9955
13.91%
1385
9955
17.54%
1670
9522
21.43%
1500
7000
62.28%
1385
2224
1.35
2.7
2
14.97%
1385
9252

Asset Turnover
Net Sales
Average total asset
Day's Receivable
Accounts Receivable
Average Day's Sales
Inventory Turnover
Inventory Turnover Period
COGS
Average Inventory

92.94%
9252
9955
36.29
920
25.35
3.67
99.52
3708
1011

Current Ratio
Current Assets
Current Liabilities
Quick Ratio/Acid Test Ratio
Current Assets-Inventory
Current Liabilities
Debt Ratio
Total Debt
Total Assets
Debt-Equity Ratio
Total liabilitiy
Owner's equity
Times Interest Earned (Interest Coverage Ratio)
Pretax Operating Income+Interest Expense
Interest
Operating Cash Flow Ratio
Price Earning Ratio (PE)
Market price per share of stock
Earnings per share (EPS)
Dividend Yield
Dividends per share

0.998
3650
3658
0.534
1952
3658
0.777
7731
9955
3.48
7731
2224
37.37
2018
54
Cash Flow from Operatio
25.19
34
1.35
0.02
0.65

Market price per share

Dividend Payout
Dividends
Net Income (Available to shareholders)
Book Value Per Share

34.00
0.48
666
1385.00
Net Worth (share capital

Capital Turnover Multiple

Working capital turnover multiple
Inventory turnover multiple
Average inventory holding period
Receivables turnover multiple
Average collection period

Net Sales/Capital Employ

Net Sales/Working capita
COGS/Inventory
Inventory/Avg daily COG
Net Sales/Receivables
Receivables/Avg. daily sa

Return on Equity (ROE) = Return on Sales X Asset Turnver X Leverage

Gross Profit = Sales - COGS

Sometimes interest rate can be added back to the denominators

There are generally 2 kinds of stocks - preferred stocks and common stocks
Preferred stocks are common stock equivalents
In financial report, this can be represented as 'basic' or 'diluted' EPS

Quick assets = Assets that can be liquidated very quickly, like cash, marketable security, some form of accou

Can refer to long term debt

Can refer to long term liabilitiy

ash Flow from Operations/Current Liability

et Worth (share capital+reserves and surplus)/no of equity shares

et Sales/Capital Employed
et Sales/Working capital (Current Asset - Current Liability)
OGS/Inventory
ventory/Avg daily COGS
et Sales/Receivables
ceivables/Avg. daily sales

e security, some form of account receiv.