
Formulae Sheet
Current ratio | Current assets |
Current liabilities | |
Quick ratio or acid test | Cash + marketable securities + net receivables |
Current liabilities | |
Current cash debt coverage | Net cash provided by operating activities |
Average current liabilities | |
Receivables turnover | Net sales |
Average net trade receivables | |
Average collection period As your report is for two months you need to adjust the days from one year to the number of days of the months you are analysing | 365 days |
Receivables turnover | |
Inventory turnover | Cost of goods sold |
Average inventory | |
Average Inventory days As your report is for two months you need to adjust the days from one year to the number of days of the months you are analysing | 365 days |
Inventory turnover | |
Debt to total asset | Total liabilities |
Total assets | |
Times interest earned | Profit before income tax + interest expense |
Interest expense | |
Cash debt coverage | Net cash provided by operating activities |
Average total liabilities | |
Free cash flow | Net cash provided by operating activities – Capital expenditures |
Return on ordinary shareholders’ equity | Profits available to ordinary shareholders |
Average ordinary shareholders equity | |
Return on assets | Profit*1 |
Average total assets | |
Profit margin | Profit*1 |
Net sales | |
Asset turnover | Net sales |
Average total assets | |
Gross profit margin | Gross profit |
Net sales | |
(Formulae Sheet continued on next page)
Formulae sheet (continued)
Operating expenses to sales | Operating expenses |
Net sales | |
Cash return on sales | Net cash provided by operating activities |
Net sales | |
Earnings per share (EPS) | Profit available to ordinary shareholders |
Weighted average number of ordinary shares | |
Price-earnings | Share price |
Earnings per share | |
Payout | Cash dividends |
Profit | |
Capital expenditure | Net cash provided by operating activities |
Capital expenditure | |
Depreciation–straight line method | Cost – residual value of asset |
Estimated useful life | |
Depreciation- diminishing balance (reducing balance) method | Carrying amount of asset x depreciation rate |
Depreciation-units of production (units of use) method | Depreciation cost per unit x units of production |
*1 Note that various interpretations are used for profit e.g. earnings before interest and tax (EBIT), earnings before tax, abnormal, net interest (interest revenue – interest expenses), depreciation and amortization (EBITDA).

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