Financial ratios are displayed in Financial Ratio Analysis. The following table displays how the ratios are calculated:
Ratio |
Calculation |
Current Ratio |
Current Assets / Current Liabilities (Groups 1-6) / (Groups 8-9) |
Debt to Equity Ratio |
(Liabilities + Debt) / (Equity) Group 8-10 / Groups 11-18 |
Acid-Test Ratio |
Cash & A/R / Current Liabilities (Groups 1-3) / (Groups 8-9) |
Times Interest Earned |
(Income Excluding Interest and Taxes) / Interest (Groups 13-15) / (Group 16 + Group 17 ) |
Inventory Turnover |
(COGS / Avg. Inventory) Annualized ((Group 15) / (Monthly Average of Group 4)) * (periods per year / current period) |
Debt Ratio |
Liabilities / Assets (Groups 8-11) / (Group 1-7) |
Avg. Days to Turnover |
(Average Inventory / COGS) * Number of Days YTD (Monthly Avg. Group 4 / Group 15) * number of days YTD |
Equity Ratio |
Equity / Assets Groups 11-18 / Groups 1-7 |
Days Sales in Inventory |
(Inventory / COGS) * Num of days YTD (Group 4 / Group 15 ) * num days to date |
Return on Total Assets |
Income / Assets (Group 13-Group 18) / (Monthly Avg. of Groups 1-7) * (periods per year / current period) |
A/R Turnover |
(Sales / Avg A/R) Annualized (Group 14 / Monthly Average of Group 2) * (periods per year / current period) |
Gross Profit Ratio |
(Sales - COGS) / Sales (Group 14 - Group 15) / Group 14 |
Avg. Age A/R |
(Average A/R / Sales) * Number of days YTD (Monthly Avg. Group 2 / Group 14 ) * number of days YTD |
Earnings to Sales Ratio |
YTD Net Income / Sales (Groups 13-18) / Group 14 |
Days of Sales in A/R |
(A/R / Sales) * Num of days YTD |
Asset Turnover Ratio |
(Sales / Monthly Avg. Assets) Annualized (Group 14 / Monthly Avg. of Groups 1-7) * (periods per year / current period) |
Avg. Operating Cycle |
Inventory Turnover + Avg AR Turnover = (Monthly Avg. Group 4 / Group 15) * number of days YTD Avg AR = (Monthly Avg. Group 2 / Group 14) * Number of days YTD |
Return on Owners Equity |
Income / (Equity + Income) Annualized (Groups 13-18) / (Monthly Avg. of Groups 12-18) * (periods per year / current period) |
Year Operating Cycle |
Turnover + Days of A/R Turnover = (Monthly Avg. Group 4 / Group 15) * Num of days YTD (Inventory / COGS) * Num of days YTD |
Return on Long Term Capital |
Income / (Assets - Liabilities) (Groups 13-18) / (Monthly Avg. of Groups 1-9) * (periods per year / current period) |
Ratios are calculated based on general ledger categories. The following table displays how general ledger categories are used for ratio calculations:
General Ledger Categories |
Ratio Type |
Group |
Cash |
Cash |
1 |
A/R Trade |
A/R-trade less: doubtful accts |
2 |
A/R Other |
All other A/R |
3 |
Inventory |
Inventory |
4 |
Inventory - Supplies |
Inventory-supplies |
5 |
Current Assets |
Prepaid Expenses |
6 |
Prepaid Expenses |
Prepaid Expenses |
6 |
Accumulated Depreciation |
Fixed, deferred, & other assets |
7 |
Fixed Assets |
Fixed, deferred, & other assets |
7 |
Other Assets |
Fixed, deferred, & other assets |
7 |
A/P Clearing |
A/P Trade, A/P Customer Refunds |
8 |
A/P Trade |
A/P Trade, A/P Customer Refunds |
8 |
A/P Other |
All other payables |
9 |
Other Liabilities |
All other payables |
9 |
Other Payables |
All other payables |
9 |
Long-term Liabilities |
Long Term Debt - Shareholder Loans |
10 |
Shareholder Loans |
Shareholder Loans |
11 |
Equity |
Shareholder equity - YTD net income |
12 |
Retained Earnings |
Shareholder equity - YTD net income |
12 |
A/R Absorption |
YTD Net Income |
13 |
A/R Discount |
YTD Net Income |
13 |
A/R Write-Off |
YTD Net Income |
13 |
A/P Discounts |
YTD Net Income |
13 |
A/P Write-off |
YTD Net Income |
13 |
Currency Exchange Gain/Loss |
YTD Net Income |
13 |
Finance Charge |
YTD Net Income |
13 |
Other Expenses |
YTD Net Income |
13 |
Other Income |
YTD Net Income |
13 |
Other |
YTD Net Income |
13 |
Sales Taxes |
YTD Net Income |
13 |
Transfer Buy |
YTD Net Income |
13 |
Transfer Purchase |
YTD Net Income |
13 |
Transfer Sales |
YTD Net Income |
13 |
Unrealized Currency Gain or Loss |
YTD Net Income |
13 |
Sales |
Sales income |
14 |
COGS |
COGS |
15 |
Inventory Change |
COGS |
15 |
Interest Expense- General |
Interest Expense- General |
16 |
Interest Expense - Long term |
Interest Expense - Long term |
17 |
Income Taxes |
Taxes |
18 |
Other Taxes |
Taxes |
18 |
Inter-Company Buy |
None |
19 |
Intercompany Due From |
None |
19 |
Intercompany Due To |
None |
19 |
Statistical |
None |
19 |