1. Liquidity ratios include the current ratio, quick ratio, cash ratio, and the defensive interval ratio.
2. Activity ratios include inventory turnover, receivables turnover, payables turnover, working capital turnover, fixed asset turnover, total asset turnover, and the cash conversion cycle.
3. Solvency ratios include debt-to-assets, debt-to-equity, financial leverage, and interest coverage.
4. Profitability ratios include gross profit margin, operating profit margin, EBITDA margin, net profit margin, return on assets, return on equity, and return on capital.
5. Market ratios include price-to-earnings, price-to-cash flow, price-to-sales, price-to-book, basic EPS, diluted EPS, cash flow per share, EBITDA per share, and dividends per share. Continue reading “Financial Ratio Analysis”