Question: I am horrid at math. I understand a formula when it is laid out, but I am not able to reverse engineer the formula. What

I am horrid at math. I understand a formula when it is laid out, but I am not able to reverse engineer the formula. What is the process for the following ratios if we are not given the information needed to use the formula, but it expects us to substitute what is given to come to the conclusion? The ratios in question are listed below:

Profitability ratios

  • Profit margin
  • Return on assets
  • Return on equity

Asset utilization ratios

  • Receivables turnover
  • Average collection period
  • Inventory turnover
  • Fixed asset turnover
  • Total asset turnover

Liquidity ratios

  • Current ratio
  • Quick ratio

Debt utilization ratios

  • Debt to total assets
  • Times interest earned
  • Fixed charge coverage

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