Show the formulas for the following ratios. Working capital Current ratio Acid-test or quick ratio Operating cash
Question:
Show the formulas for the following ratios.
Working capital
Current ratio
Acid-test or quick ratio
Operating cash flows to current liabilities
Free cash flows
Return on net operating assets
Accounts receivable turnover
Gross profit margin
Profit margin
Inventory turnover—skip this ratio if your company does not have inventory; include
in your calculations that your company does not have inventory so ratio is N/A (not
applicable).
Debt-to-equity ratio
Times interest earned ratio
Return on common equity
Return on assets
Earnings per share (basic and diluted)—you can get this from the company’s Income
Statement or Statement of Operations
Price-earnings ratio—use stock market price for date of financial statements, if you
can find it; if you can’t find it, then use the current market price.