Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 20 views

    Total Financial Ratios

    Uploaded by

    hoangsubaxd
    The document outlines various financial ratios used to analyze companies, grouped into liquidity, activity, debt, profitability, and market ratios. Liquidity ratios measure a company's ability to pay short-term obligations. Activity ratios measure how efficiently a company uses its assets to generate sales. Debt ratios measure financial leverage and the amount of debt used. Profitability ratios evaluate income and margins. Market ratios relate market price to earnings.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Total Financial Ratios

    Uploaded by

    hoangsubaxd
    20 views2 pages
    The document outlines various financial ratios used to analyze companies, grouped into liquidity, activity, debt, profitability, and market ratios. Liquidity ratios measure a company's ability to pay short-term obligations. Activity ratios measure how efficiently a company uses its assets to generate sales. Debt ratios measure financial leverage and the amount of debt used. Profitability ratios evaluate income and margins. Market ratios relate market price to earnings.

    Original Description:

    about the ratios

    Original Title

    total financial ratios

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document outlines various financial ratios used to analyze companies, grouped into liquidity, activity, debt, profitability, and market ratios. Liquidity ratios measure a company's ability to pay short-term obligations. Activity ratios measure how efficiently a company uses its assets to generate sales. Debt ratios measure financial leverage and the amount of debt used. Profitability ratios evaluate income and margins. Market ratios relate market price to earnings.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    20 views2 pages

    Total Financial Ratios

    Uploaded by

    hoangsubaxd
    The document outlines various financial ratios used to analyze companies, grouped into liquidity, activity, debt, profitability, and market ratios. Liquidity ratios measure a company's ability to pay short-term obligations. Activity ratios measure how efficiently a company uses its assets to generate sales. Debt ratios measure financial leverage and the amount of debt used. Profitability ratios evaluate income and margins. Market ratios relate market price to earnings.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    No Ratio Formula Rating

    I Liquidity ratio measures the ability to pay short-term liabilities obligations when they
    come due
    1 Current Ratio Current asset The higher, the better
    Current liabilities Too high => idle
    assets
    2 Quick ratio C urrent assets−Inventory
    Current liabilities

    II Activity Ratio measuring the speed of the different accounts can convert into revenues or
    cash flows
    1 Inventory Turnover Cost of goods sold The larger the
    Inventory turnover, the higher
    the turnover rate =>
    Fewer days of
    2 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒂𝒈𝒆 𝒐𝒇 365
    inventory
    𝒊𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 Inventory turnover
    (Depending on the
    industry that the
    assessment)
    3 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 Recievables x 365 The lower, the better
    𝒄𝒐𝒍𝒍𝒆𝒄𝒕𝒊𝒐𝒏 𝒑𝒆𝒓𝒊𝒐𝒅 Net Revenues because the capital of
    the business is less
    occupied
    4 𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒑𝒂𝒚𝒎𝒆𝒏𝒕 Payables x 365 The higher, the better
    𝒑𝒆𝒓𝒊𝒐𝒅 Cost of goods sold because the longer the
    business occupies
    capital (clear
    agreement)
    5 𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕 Net Revenues The higher, the better
    𝒕𝒖𝒓𝒏𝒐𝒗𝒆𝒓 Total assets 1 $ total asset create
    … $ net revenues
    6 𝑻𝒐𝒕𝒂𝒍 𝒆𝒒𝒖𝒊𝒕𝒚 Net revenues The higher, the better
    𝒕𝒖𝒓𝒏𝒐𝒗𝒆𝒓 '
    Shareholder s Equity 1 $ equity create … $
    net revenues
    III Debt ratios Measuring the total assets that are supported by the company's creditors
    1 𝑫𝒆𝒃𝒕 𝒓𝒂𝒕𝒊𝒐 Total debt …% Total asset
    Total assets financed by debt
    It depends on whether
    2 Debt on equity Total debts the business is capital
    Equity intensive or not

    3 𝑻𝒊𝒎𝒆𝒔 𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕 (𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑏𝑒𝑓𝑜𝑟𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑡𝑎𝑥 The higher, the better
    𝒆𝒂𝒓𝒏𝒆𝒅 𝒓𝒂𝒕𝒊𝒐 (EBIT))/(𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑚𝑜𝑢𝑛𝑡) because the business
    can afford to pay the
    interest
    IV Profitability ratios evaluate the income of the company with the different accounts to
    create income such as revenues, total asset and equity
    1 𝑮𝒓𝒐𝒔𝒔 𝒑𝒓𝒐𝒇𝒊𝒕 Gross profit The higher, the better
    𝒎𝒂𝒓𝒈𝒊𝒏 net revenues 1 $ net revenue
    generates … $ profit
    2 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝒑𝒓𝒐𝒇𝒊𝒕 (Earning before interest ∧tax(EBIT ))/(Net revenue )
    𝒎𝒂𝒓𝒈𝒊𝒏

    3 𝑵𝒆𝒕 𝒑𝒓𝒐𝒇𝒊𝒕 Net Income


    𝒎𝒂𝒓𝒈𝒊𝒏 Net revenue

    4 EPS Net Income−Prefered Dividends The higher, the better


    The numbers of outstanding common stocks => attracting
    investment capital
    5 ROA Net income The higher, the better
    Total Assets

    6 ROE Net income The higher, the better


    '
    Shareholder s Equity
    V Market ratios
    1 P/E The market price Need to analyze many
    Earnings per share other factors to
    evaluate

    You might also like