Liquidity
Cash and Marketable Cash + Marketable Securities （Percentage of total assets
Securities to Total Assets = Total Assets held as highly liquid assets）
Quick Ratio= Cash + Marketable Securities + Accounts Receivable （Amount of liquid assets Current Liabilities available to pay short-term liabilities.）
Current Ratio= Current Assets （Amount of current assets available to service current liabilities） Current Liabilities
Operating Cash Flow to Cash flow from operations Provides information about liquidity；Indicates the extent to which
Current Liabilities Ratio = Current liabilities a company’s current obligations can be paid using operating cash flow
Accounts Payable Turnover = Cost of Goods Sold Number of account payable cycles experienced by a firm. Accounts Payable
Days’ Payable Period = 365 Number of days, on average, required to pay Cost of Goods Sold ÷ Accounts Payable an outstanding account payable.
Solvency
Long-term Debt to Long-term Debt +Current Portion of Long-Term Debt Percentage of total assets
Total Assets Ratio = Total Assets provided by creditors
Long-term Debt to Long-term Debt +Current Portion of Long-Term Debt Relative investment of long-term
Share holders’ Equity Ratio = Shareholders’ Equity creditors versus shareholders in a business.
Interest Net Income Before Taxes + Interest Expense
Coverage Ratio= Interest Expense
Profitability Analysis Net Sales – Cost of Goods Sold Indicates the percentage of income generated from
Gross Profit Margin Ratio= Net Sales sales after deducting the cost of goods sold. Net