Ratio analysis formulas

26 Jul 2021



You will find more detail of our conventional ratios below.


Current Ratio = Current Assets / Current Liabilities

Quick Ratio = (Current Assets - Inventory) / Current Liabilities

Cash Ratio = Cash & Equivalents / Current Liabilities

Operating Cash Flow Ratio = Operating Cash Flow / Current Libilities

Inventory Turnover = Average Inventory / Cost of Revenue

Inventory Processing Period = 365 / Inventory Turnover

Receivables Turnover = Revenue / Average Accounts Receivable

Receivables Collection Period = 365 / Receivables Turnover

Payable Turnover = (Cost of Revenue + Ending inventory - Starting inventory) / Average accounts payable

Payable Payment Period = 365 / Payable Turnover

Cash Conversion Cycle = Inventory Processing Period + Receivables Collection Period - Payable Payment Period

Debt Ratio = Total Liabilities / Total Assets

Debt to Equity = Total Liabilities / Stockholders Equity

Longterm Debt to Equity = Total Non Current  Liabilities / Stockholders Equity

Interest Cover = Interest Expense / Operating Income

Reported Interest Cover = Interest Expense / Reported Operating Income

Fixed Charge Cover = (Operating Income + Operating Lease) / (Operating Lease + Interest Expense)

Reported Fixed Charge Cover = (Reported Operating Income + Operating Lease) / (Operating Lease + Interest Expense)

Debt Service Coverage = EBITDA / (Long Term Debt + Short Term Debt)

Reported Debt Service Coverage = Reported EBITDA / (Long Term Debt + Short Term Debt)

Equity Multiplier = Total Assets / Stockholders Equity

Debt to EBITDA = (Long Term Debt + Short Term Debt) / EBITDA

Reported Debt to EBITDA = (Long Term Debt + Short Term Debt) / Reported EBITDA

Net Debt to EBITDA = (Long Term Debt + Short Term Debt - Cash & Equivalents) / EBITDA

Reported Net Debt to EBITDA = (Long Term Debt + Short Term Debt - Cash & Equivalents) / Reported EBITDA

Gross Debt to EBITDA = Gross Debt / EBITDA

Reported Gross Debt to EBITDA = Gross Debt / Reported EBITDA

EBITDA to Interest Payments = EBITDA / Interest Payments

Reported EBITDA to Interest Payments = Reported EBITDA / Interest Payments

Asset Turnover = Revenue / Average Total Assets

Equity Turnover = Revenue / Average Stockholders Equity

Gross Asset Turnover Ratio = Revenue / Average Total Cash Generating Assets

Gross Margin = (Gross Profit / Revenue ) x 100

Reported Gross Margin = (Reported Gross Profit / Revenue ) x 100

EBITDA Margin = ( EBITDA / Revenue ) x 100

Reported EBITDA Margin = ( Reported EBITDA / Revenue ) x 100

Operating Margin = ( Operating Income / Revenue ) x 100

Reported Operating Margin = ( Reported Operating Income / Revenue ) x 100

Reported Net Income Margin = ( Reported Net Income / Revenue ) x 100

Net Income Margin = ( Net Income / Revenue ) x 100

Reported Dividend Cover = Reported EPS / DPS

Dividend Cover = EPS / DPS

Reported Return on Equity = Reported Net Income / Stockholders Equity

Reported Return on Assets = Reported Net Income / Total Assets

Return on Equity = Net Income / Stockholders Equity

Return on Assets = Net Income / Total Assets

Operating Cash Flow to Total Assets = Operating Cash Flow / Total Assets

Revenue per Share = Revenue / Basic Average Share

EBITDA per Share = EBITDA / Basic Average Share

Reported EBITDA per Share = Reported EBITDA / Basic Average Share

Gross Cash per Share = Gross Cash / Basic Average Share

Price to Reported Earnings = Average Share Price / Reported EPS

Price to Earnings = Average Share Price / EPS

Price to Book = Average Share Price / Stockholders Equity per Share

EV to Gross Cash = Enterprise Value / Gross Cash

EV to EBITDA = Enterprise Value / EBITDA

Reported EV to EBITDA = Enterprise Value / Reported EBITDA

Dividend Yield = DPS / Average Share Price

Income Yield = Net Income / Average Share Price

Reported Income Yield = Reported Net Income / Average Share Price

Price to Sales = Average Share Price / Revenue per Share

Book Value per Share = Stockholders Equity / Basic Average Share

Operating Income per Share = Operating Income / Basic Average Share

Reported Operating Income per Share = Reported Operating Income / Basic Average Share

Operating Cash Flow per Share = Operating Cash Flow / Basic Average Share

TOCGA per Share = Total Cash Generating Assets / Basic Average Share

Capex to Depreciation & Amortisation = Capital Expenditure / Depreciation & Amortization

Capex to Dep & Amort ex Acq Amort  = Capital Expenditure / Depreciation & Amortization ex Acq Amortisation