Fomular

Formula

1. Opertating cycle(oc)=AAI+ACP. Cash conversion cycle(ccc)=AAI+ACP-APP
2. SGR = ROE* X Retention Rate (RR)/1 – ROE X RR
3. Current ratio= Current assets /Current liabilities
4. Quick ratio = Current assets – Inventory –Prepaids(Acid test)/ current liabilities

6. Cash ratio =      Cash + Marketable securities/ current liabilities

7. Receivables turnover =    Annual credit sales/Accounts receivable

8. Receivables collection period = 365/ Receivables turnover

9. Inventory turnover = Cost of goods sold /Average inventory

10. Inventory period [86 days] =    365 /Inventory turnover [4.24]                                

11. Payables turnover [7.61] = Operating expenses /Average accounts payable                          

12. Payables period [48 days] =   365_/ Payables turnover [7.61]                              

13. Asset turnover ratio [1.405] =    Sales [$400,988]/ Total assets                                  

14. Debt ratio [.19] = Total debt [$53,313] /Total assets [$285,484]            

15. Debt-to-equity ratio [0.38] = Total debt [$53,313] /Total equity [$141,928]                          

16. Interest coverage [14.81] = EBIT*_[$35,438]/ Interest charges  [$2,393]

17. Leverage under the DuPont ratio is:

Assets-to-equity ratio [2.011] = Total assets [$285,484] /Equity [$141,928]                                    

18. Gross profit margin [0.12] = Sales - Cost of goods sold /Sales                          

          Return on assets [0.08] =   Net earnings [$22,851] /Total assets [$285,48                                

          Return on equity (ROE) [0.161] =  Net earnings /Shareholders’ equity

          Return on sales (ROS) [0.057]=  Net earnings [$22,851]/ Sales [$400,988]                              

          Sales to EBITDA* ratio [7.93] = Sales /EBITDA [$35,438 + $15,121]