1. Value Added Productivity Ratios
Labor Productivity Ratios:
| Net value added per working day/hour |
Net value added
Total hours / days worked
|
|---|---|
| Net value added per employee |
Net value added
No. of employees
|
| Wage distribution ratio |
Total wages cost
Total Net value added
|
| Labour equipment ratio |
Net fixed assets
No. of employees
|
| Net value added times salary & wages |
Net value added
Salary and wages
|
| Wage base |
Total salary & wages
No. of workers
|
| Net value added to net worth |
Net value added
Net worth
|
|---|---|
| Net value added to capital employed |
Net value added
Total capital employed
|
| Net value added to total fixed assets |
Net value added
Fixed assets
|
| Net value added to total tangible assets |
Net value added
Tangible assets
|
| Net value added to total intangible assets |
Net value added
Intangible assets
|
| Net value added to plant assets |
Net value added
Plant and equipment
|
| Net value added to total revenue |
Net value added
Total revenue
|
2. Liquidity Ratios
| Current ratio |
Current assets
Current liabilities
|
|---|---|
| Quick ratio |
Current assets - Inventory - Prepaid expenses
Current liabilities
|
| Operating cash liquidity ratio |
Cash flow from operation + Cash balance
Current liabilities
|
| Cash ratio |
Cash + Marketable securities
Current liabilities
|
| Cash flow from operating activities ratio |
Cash flow from operating activities
Current liabilities
|
3. Leverage / Solvency Ratios
| Debt to equity ratio |
Long-term debt
Stockholders' equity
|
|---|---|
| Total debt to total capital ratio |
Total debt
Total capital employed
|
| Interest coverage ratio |
EBIT
Interest expense
|
| Financial leverage |
EBIT
EBT
|
| Debt ratio |
Total debt
Total assets
|
| Equity ratio |
Total shareholders' equity
Total assets
|
| Fixed charges coverage ratio |
EBIT
Fixed charges
|
4. Assets Management Ratios
| Accounts receivable turnover ratio |
Net credit sales
Average accounts receivable
|
|---|---|
| Average days on receivables |
Days in a year
Accounts receivable turnover ratio
|
| Inventory turnover ratio |
Cost of goods sold
Average inventory
|
| Inventory conversion cycle |
Days in a year
Inventory turnover ratio
|
| Fixed assets turnover ratio |
Net sales
Average net fixed assets
|
| Total asset turnover ratio |
Net sales
Average total assets
|
| Capital employed turnover ratio |
Net sales
Average capital employed
|
5. Profitability Ratios
| Net profit margin |
Net profit after tax
Net sales
× 100
|
|---|---|
| Gross profit margin |
Gross profit
Net sales
× 100
|
| Return on assets (ROA) |
Net profit after tax + Interest expense, net of tax
Average total assets
× 100
|
| Return on equity (ROE) |
Net profit after tax
Average shareholders' equity
× 100
|
| Return on common stockholders' equity |
Net income - Preferred dividends
Average common stockholders' equity
× 100
|
6. Share Valuation & Operating Ratios
| Earning per share (EPS) |
Net income available to common stocks
Average number of common stocks
|
|---|---|
| Dividend per share (DPS) |
Dividend distributed to common stockholders
Average number of common stocks
|
| Earning yield |
Earning per share
Market price per share
|
| Dividend yield |
Dividend per share
Market price per share
|
| Capital gain ratio |
Current market price per share - Beginning market price per share
Beginning market price per share
|
| Price-earnings ratio (P/E) |
Market value per share
Earning per share
|
| Book value (net worth) per share |
Shareholders' equity
No. of common stocks outstanding
|
| Operating expenses ratio |
Operating expenses
Net sales
× 100
|
| Total operating cost ratio |
Total operating cost
Net sales
× 100
|
Note:
Total operating cost = Cost of goods sold + Operating expenses
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