Various ratio used in accounting

Current Ratio

		Current Assets
	Current Ratio =	------------------------
		Current Liabilities

Quick Ratio

		Quick Assets
	Quick Ratio =	----------------------
		Current Liabilities

Quick Assets = Current Assets - Inventories

Net Working Capital Ratio

		Net Working Capital
	Net Working Capital Ratio =	--------------------------
		Total Assets

Net Working Capital = Current Assets - Current Liabilities Return on Assets (ROA) Net Income Return on Assets (ROA) = ---------------------------------- Average Total Assets Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2     Return on Equity (ROE) Net Income Return on Equity (ROE) = -------------------------------------------- Average Stockholders' Equity Average Stockholders' Equity = (Beginning Stockholders' Equity + Ending Stockholders' Equity) / 2     Return on Common Equity (ROCE) Net Income Return on Common Equity = -------------------------------------------- Average Common Stockholders' Equity Average Common Stockholders' Equity = (Beginning Common Stockholders' Equity + Ending Common Stockholders' Equity) / 2     Profit Margin Net Income Profit Margin = ----------------- Sales Earnings Per Share (EPS) Net Income Earnings Per Share = --------------------------------------------- Number of Common Shares Outstanding   Assets Turnover Ratio Sales Assets Turnover Ratio = ---------------------------- Average Total Assets Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2     Accounts Receivable Turnover Ratio Sales Accounts Receivable Turnover Ratio = ----------------------------------- Average Accounts Receivable Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2     Inventory Turnover Ratio Cost of Goods Sold Inventory Turnover Ratio = --------------------------- Average Inventories  Average Inventories = (Beginning Inventories + Ending Inventories) / 2     _____________________________________________________________________________ Debt to Equity Ratio Total Liabilities Debt to Equity Ratio = ---------------------------------- Total Stockholders' Equity Interest Coverage Ratio Income Before Interest and Income Tax Expenses Interest Coverage Ratio = ------------------------------------------------------- Interest Expense Income Before Interest and Income Tax Expenses = Income Before Income Taxes + Interest Expense _______________________________________________________________________________ Price Earnings (PE) Ratio Market Price of Common Stock Per Share Price Earnings Ratio = ------------------------------------------------------ Earnings Per Share Market to Book Ratio Market Price of Common Stock Per Share Market to Book Ratio = ------------------------------------------------------- Book Value of Equity Per Common Share Book Value of Equity Per Common Share = Book Value of Equity for Common Stock / Number of Common Shares     Dividend Yield Annual Dividends Per Common Share Dividend Yield = ------------------------------------------------ Market Price of Common Stock Per Share Book Value of Equity Per Common Share = Book Value of Equity for Common Stock / Number of Common Shares     Dividend Payout Ratio Cash Dividends Dividend Payout Ratio = -------------------- Net Income