Financial Ratios &Formulas

Financial Ratios &Formulas

These are some Financial Ratios & Formulas:



  1. Current Ratio                              -  CA/CL
  2. Working Capital                          - Current Assets - Current Liabilities
  3. Quick Ratio                                 - Quick Assets/CL
  4. Cost of Goods                              - Sold BI + Purchases - Ending Inventory
  5. Gross Profit/GM                          -  Revenue - COGS
  6. Gross Profit Percentage               -  GP or GM/ net sales (total revenue)
  7. Profit Margin                                - Net Income/Revenue
  8. Earnings Per Share                      -  Net Income/Avg # Of Outstanding Shares
  9. Total Asset Turnover Ratio          -   Net Sales/ Avg Total Assets
  10. Receivables Turnover Ratio        -  Net Sales/Avg Net Receivables
  11. Inventory Turnover Ratio            -  COGS/AVG inventory
  12. Straight Line Depreciation         -   (Cost-Residual)/Useful Life
  13. Double-Declining                       - (Cost-Accumulated Depreciation) * (2/useful life)
  14. Units of Production     -  [(Cost-Residual)/Estimated Total Production] * Actual Production
  15. Net Book Value                           -   Cost - Acc Depreciation
  16. Impairment Loss                          -   Net Book Value - Fair Value