http://valuationacademy.comHomeFinancial Modeling TrainingAboutValuation AcademyFinancial Ratio Cheat SheetThis is a summary of financial ratios commonly used in the evaluation of a company.Liquidity ratios1)Current Ratio = Current Asset / Current Liability2)Quick Ratio = (Cash + Marketable securities + account receivables) / Current Liability3)Cash Ratio = (Cash + Marketable securities)/current Liability4)Cash flow from operations ratio =Cash Flow from Operations / Current Liability5)Receivable Turnover = net annual sales / average receivables6)Average Number of days receivables outstanding (Average Collection period) = 365/receivables turnover7)Inventory Turnover = Cost of goods sold (COGS) / average inventory8)Average Number of days in stock = 365/ Inventory turn over9)Payable Turnover = Annual Purchases / Average Payables10) Average Number of days payables outstanding (Average age of payables) = 365 / payable turnover11) Cash Conversion Cycle = Average collection period + average number of days in stock average age ofpayablesProfitability Ratios1)Growth Profit Margin = gross profit / net saleswhere gross profit = net sales COGS2)Operating Profit Margin = Operating Income / net saleswhere Operating Income = Earnings before tax and interest (EBIT)3)EBITDA margin = Earnings before interest, tax, depreciation and amortization / net sales4)Net Margin (Profit Margin) = net income / salesFinancial Ratio Cheat Sheet Valuation Academy http://valuationacademy.com/financial-ratio-cheat-sheet/1 of 3 8/9/2015 4:56 PM5)Contribution Margin = Contribution / saleswhere contribution = sales variable costReturn on investment Ratios.1)Return on Assets (ROA) = EBIT /average total assets2)Return on common equity = (net income preferred dividends)/average common equity3)Return on Total equity (ROE) = net income / average total equityOperating Efficiency Ratios1)Total Asset turnover = net sales/average total assets2)Fixed asset turnover = net sales / average net fixed assets3)Equity turnover = net sales / average total equityFinancial Risk Ratios / Solvency Ratios1)Debt to Total Capital = total debt / total capital2)Debt to Equity = Total debt / total equity3)Financial leverage = average total assets / average total equity4)Interest Coverage Ratio =EBIT / interest expense5)CFO to debt = Cash flow from operations / total debt6)Fixed charge coverage = earnings before fixed charges and taxes / fixed chargesValuation ratios1)Price to earnings (P/E) ratio= current market price ofthe common stock / company earnings per share2)Earnings per share (EPS) = (net income dividends on preferred stock) / weighted average number ofshares outstanding3)Sustainable growth rate g = Retention rate * ROEwhere retention rate = 1 dividend declared /net income = 1 dividend payout ratioFinancial Ratio Cheat Sheet Valuation Academy http://valuationacademy.com/financial-ratio-cheat-sheet/2 of 3 8/9/2015 4:56 PMMost FavoritedThe Difference Between Market Value of Invested Capital(MVIC) and Enterprise Value (EV)What is the Enterprise Value (EV)?What is the Market Value of Invested Capital (MVIC)?Types of Value- Fair Market Value, Intrinsic Value, Liquidation Value, Investment ValueHow to do a Company ValuationCategoriesAccountingAlternative InvestmentsBondsCapital BudgetingCapital MarketsCorporate FinanceCorporate GovernanceFinance BasicsFinancial Statement AnalysisGeneralGet a JobIndustry AnalysisInterview QuestionsThe Finance InterviewValuationCopyright 20102015Kotak Sec. SpecialOfferOpen your Share Trading A/C atRs.299/- Only. Open an AccountNow!Financial Ratio Cheat Sheet Valuation Academy http://valuationacademy.com/financial-ratio-cheat-sheet/3 of 3 8/9/2015 4:56 PM