*Current ratio=Current assets/Current liabilities,
*Quick ratio = (Current assets – Inventory)/Current liabilities,
*Cash ratio=Cash/Current liabilities,
*Net working capital=Net working capital/Total assets,
*Interval measure=Current assets/Average daily operating costs,*Average daily operating costs=Cost of goods sold/365,*Total debt ratio=(Total assets – Total equity)/Total assets,*Debt/equity ratio=Total debt/Total equity,*Equity multiplier=Total assets/Total equity,*Long-term debt ratio=Long-term debt/(Long-term debt + total equity),*Times interest earned=EBIT/Interest,*Cash coverage ratio=(EBIT + Depreciation)/Interest,*Inventory turnover=Cost of goods sold/Inventory,*Day’s sakes in inventory=365days/Inventory turnover,*Receivable turnover= Sales/Accounts receivable,*Day’s sales in receivables= 365days/Receivable turnover,*NWC=Current assets – Current liabilities,*NWC turnover= Sales/NWC, *Fixed asset turnover=Sales/Net fixed assets,*Total asset turnover=Sales/Total assets,*Profit margin= Net income/Sales,*Return on assets(ROA)=Net income/Total assets,*Return on equity(ROE)= Net income/Total equity,*ROE= (Net income/Sales) x (Sales/Assets) x (Assets/Equity),*Price-earnings ratio= Price per share/earnings per share,*Earnings per share= Net income/# of share issued,*Market-to-book ratio=Market value per share/book value per share,*Book value per share= total equity/# of shares issued,*Capital intensity ratio= Total assets/Sales,*Dividend payout ratio= Dividends/Net income=Yearly dividend per share/Earning per share,*Earning Retention Ratio= (Net income – dividends)/net income=1-dividend payout ratio.
III Income statement items-all cost (cost of goods sold and other administrative expenses)*Balance sheet items-all current assets (cash, inventory, accounts receivable) –some current liabilities (accounts payable) –fixed assets items*Retained earnings= currents