Outstanding Formulas For Financial Ratios

Liabilities dfrac 500 2000 025 QuickRatio CurrentLiabilitiesQuickAssets.

Formulas for financial ratios. Expense ratio Particular expense Net sales 100. Ratios allow us to compare companies across industries big and small to identify their strengths and weaknesses. Commonly Used Debt Ratios and Formulas.

In a sense financial ratios dont take into consideration the size of a company or the industry. Current Ratio Current AssetsCurrent Liabilities. Acid-Test Ratio Quick Assets Current Liabilities Also known as quick ratio it measures the ability of a company to pay short-term obligations using the more liquid types of current assets or quick assets cash marketable securities and current receivables.

Commonly Used Profitability Ratios and Formulas. Liquidity solvency efficiency profitability market prospect. A financial ratio is a quantitative relationship between two or more numbers in a financial statement.

Commonly Used Liquidity Ratios and Formulas. Financial acronyms The entire acronym collection of this site is now also available offline with this new app for iPhone and iPad. Debt-to-Equity Ratio Liabilities Total Shareholder Equity Total 2.

Ratios are just a raw computation of financial position and performance. PG HA ROT 1 Cash ratio Cash marketable securities Current liabilities More conservative than quick ratio as it excludes net receivables all of which may not be collected Benchmark. Operating cycle Number of days of inventory Inventory InventoryAverage days cost of goods sold Cost of goods sold 365 Number of days of receivables Accounts receivable Accounts receivable Average days sales on credit Sales on credit 365.

Ratio dfrac Quick. Ratio Formula What it shows. Q u i c k R a t i o Q u i c k A s s e t s C u r r e n t L i a b i l i t i e s 5 0 0 2 0 0 0 0.