Ratio Analysis

Profitability Ratio: 

1. Profit margin: net profit / sales * 100%
2. Gross profit margin: gross profit / sales  * 100%
3. Return on equity: net profit / equity  * 100%
4. Return on asset: EBIT / average assets  * 100%

Asset Efficiency Ratio: 

1. Asset turnover: sales / average total asset = x times
2. Days inventory: average inventory / COS * 365 = days
3. Inventory turnover: COS / average inventory = x times
4. Collection period: average receivables / sales * 365 = days
5. Receivables turnover: credit sales / average receivables = x times 
6. Payables period: average payables/ credit purchases or COGS  * 365 = days
7. Payables turnover: credit purchases or COGS / average payables
6. Operating cycle: Days inventory + Collection period
7. Cash conversion cycle: Operating cycle - payables period

Liquidity Ratio: 

1. Current ratio: current asset / current liabilities = x times

2. Quick asset ratio: (current asset - inventory) / current liabilities = x times

Capital Structure Ratio: 

1. Debt to equity ratio: total liabilities / total equity

2. Debt ratio: total liabilities / total assets

3. Equity ratio: total equity / total assets 

4. Interest coverage ratio: EBIT / interest expenses

Market Ratio:

1. Earnings per share: profit available for distribution / weight number of shares

2. Price per earning ratio: price per share / earnings per share

3. Dividend per share: total dividend / weight number of shares

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