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Current Ratio

current assets / current liabilities

Acid Test (or quick) ratio

(cash + marketable securities + AR) / current liabilities

AR = accounts receivables

Accounts Receivable Turnover

net sales / average accounts receivable

Average Days to collect Receivables

365 / accounts receivable turnover

Inventory Turnover

COGS / average inventory

COGS = cost of goods sold

# times interest earned

(net income + interest expense + income tax expense) / interest expense

Debt to Equity Ratio

total liabilities / total stockholder's equity

Return on Common Equity

(net income - preferred dividends) / average common stockholder's equity

Return on Assets

(net income + interest expense) / average total assets

Working Capital

current assets - current liabilities

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