Ratios

Profitabilityratios

Profitabilityratiosmeasurethefirm'suseofitsassetsandcontrolofitsexpensestogenerateanacceptablerateofreturn.

\o"Grossmargin"

Grossmargin

,GrossprofitmarginorGrossProfitRate

OR

\o"Operatingmargin"

Operatingmargin

,OperatingIncomeMargin,OperatingprofitmarginorReturnonsales(ROS)

Note:Operatingincomeisthedifferencebetweenoperatingrevenuesandoperatingexpenses,butitisalsosometimesusedasasynonymforEBITandoperatingprofit.

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Thisistrueifthefirmhasnonon-operatingincome.(

\o"Earningsbeforeinterestandtaxes"

Earningsbeforeinterestandtaxes

/Sales)

\o"Profitmargin"

Profitmargin

,netmarginornetprofitmargin

\o"Returnonequity"

Returnonequity

(ROE)

\o"Returnoninvestment"

Returnoninvestment

(ROIratioor

\o"DuPontratio(pagedoesnotexist)"

DuPontratio

)

\o"Returnonassets"

Returnonassets

(ROA)

\o"ReturnonassetsDuPont"

ReturnonassetsDuPont

(ROADuPont)

\o"ReturnonEquityDuPont(pagedoesnotexist)"

ReturnonEquityDuPont

(ROEDuPont)

\o"Returnonnetassets"

Returnonnetassets

(RONA)

\o"Returnoncapital"

Returnoncapital

(ROC)

\o"Riskadjustedreturnoncapital"

Riskadjustedreturnoncapital

(RAROC)

OR

\o"Returnoncapitalemployed"

Returnoncapitalemployed

(ROCE)

Note:thisissomewhatsimilarto(ROI),whichcalculatesNetIncomeperOwner'sEquity

\o"Cashflowreturnoninvestment"

Cashflowreturnoninvestment

(CFROI)

\o"Efficiencyratio"

Efficiencyratio

\o"Netgearing(pagedoesnotexist)"

Netgearing

Liquidityratios

\o"Accountingliquidity"

Liquidity

ratiosmeasuretheavailabilityofcashtopaydebt.

\o"Currentratio"

Currentratio

\o"Quickratio"

Acid-testratio(Quickratio)

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\o"Operatingcashflow"

Operationcashflow

ratio

Activityratios

Activityratiosmeasuretheeffectivenessofthefirmsuseofresources.

\o"Debtorcollectionperiod"

Averagecollectionperiod

\o"DegreeofOperatingLeverage(pagedoesnotexist)"

DegreeofOperatingLeverage

(DOL)

\o"DSORatio"

DSORatio

\o"Averagepaymentperiod(pagedoesnotexist)"

Averagepaymentperiod

\o"Assetturnover"

Assetturnover

\o"Inventoryturnover"

Inventoryturnover

ratio

\o"ReceivablesTurnoverRatio"

ReceivablesTurnoverRatio

\o"Inventoryconversion(pagedoesnotexist)"

Inventoryconversion

ratio

Inventoryconversionperiod

Receivablesconversionperiod

Payablesconversionperiod

\o"Cashconversioncycle"

CashConversionCycle

InventoryConversionPeriod+ReceivablesConversionPeriod-PayablesConversionPeriod

Debtratios(leveragingratios)

Debtratiosmeasurethefirm'sabilitytorepaylong-termdebt.Debtratiosmeasure

\o"Leverage(finance)"

financialleverage

.

\o"Debtratio"

Debtratio

\o"Debttoequityratio"

Debttoequityratio

\o"Long-termDebttoequity(pagedoesnotexist)"

Long-termDebttoequity

(LTDebttoEquity)

\o"Timesinterest-earnedratio"

Timesinterest-earnedratio

OR

\o"Debtservicecoverageratio"

Debtservicecoverageratio

Marketratios

Marketratiosmeasureinvestorresponsetoowningacompany'sstockandalsothecostofissuingstock.

\o"Earningspershare"

Earningspershare

(EPS)

\o"Payoutratio"

Payoutratio

OR

\o"Dividendcover"

Dividendcover

(theinverseofPayoutRatio)

\o"PEratio"

P/Eratio

\o"Dividendyield"

Dividendyield

Cashflowratioor

\o"Price/cashflowratio"

Price/cashflowratio

\o"P/Bratio"

Pricetobookvalueratio

(P/BorPBV)

\o"Price/salesratio"

Price/salesratio

\o"PEGratio"

PEGratio

OtherMarketRatios

\o"EV/EBITDA"

EV/EBITDA

\o"EV/Sales"

EV/Sale