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ratios to analyze liquidity, solvency, and profitability

working capital

current assets - current liabilities

current ratio

Current Assets/Current Liabilities

inventory turnover ratio

cost of goods sold/average inventory

days in inventory

365/inventory turnover ratio

receivables turnover ratio

net credit sales / average net receivables

cash debt coverage ratio

net cash provided by operations / average total liabilities

times interest earned ratio

(Net Income + Interest Expense + Tax expense) / Interest Expense

price-earnings ratio

Market price per share / Earnings per share

asset turnover ratio

Net Sales/Average Total Assets

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