Show the formulas for the following ratios.

1. Working capital

2. Current ratio

3. Acid-test or quick ratio

4. Operating cash flows to current liabilities

5. Free cash flows

6. Return on net operating assets

7. Accounts receivable turnover

8. Gross profit margin

9. Profit margin

10. 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 Debt-to-equity ratio applicable).

11. Times interest earned ratio

12. Return on common equity

13. Return on assets

14. Earnings per share (basic and diluted)—you can get this from the company’s Income

    Statement or Statement of Operations

15. 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.

Answer rating: 100% (QA)

formulas for the following ratios Working capital Current Assets Current Liabilities Current ratio C... View the full answer