Financial Ratio Analysis
Financial Ratio Analysis
Why use ratios
Question 1
Question 2
Question 3
Question 4
Liquidity Ratios
Liquidity Ratios
Liquidity Ratios
Current Ratio
Acid Test or Quick Ratio
Defensive Interval
Ratio of Operating Cash Flow to Current Debt Obligations
Efficiency Ratios
Efficiency Ratios
Efficiency Ratios
Accounts Receivable Turnover
Days in Accounts Receivable
Inventory Turnover
Days in Inventory
Operating Cycle
Capital Turnover
Profitability Ratios
Profitability Ratios
Profitability Ratios
Calculating Return on Equity
Components of Return on Equity
Operating Income to Sales
Return on Assets
Leverage Ratios
Leverage Ratios
Leverage Ratios
Debt to Equity
Debt Ratio
Times Interest Earned
Market Value Ratios
Market Value Ratios
Market Value Ratios
Earnings Per Share
P E Ratio
Book Value per Share
Dividend Yield
Comparing Financial Statements
Comparing Financial Statements
Financial Statements
Vertical Analysis
Horizontal Analysis
Summary