15 Financial Ratios Formulas To Analyse Any Business

These are the most important financial ratios formulas you can use to analyze any business:

current ratio
absolute ratio
quick ratio
the accounts receivable turnover ratio
the accounts payable turnover ratio
inventory turnover ratio
debt to assets ratio
debt to equity ratio
interest coverage ratio
gross profit margin ratio
operating profit margin ratio
return on capital employed ratio
return on equity ratio
Earnings Per Share
Price/Earnings Ratio

What is a current ratio?

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What is a quick ratio?

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What is the absolute ratio?

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What is the accounts receivable turnover ratio?

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What is the accounts payable turnover ratio?

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What is the inventory turnover ratio?

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What is a debt to assets ratio?

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What is a debt to equity ratio?

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What is the interest coverage ratio?

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What is a gross profit margin?

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What is an operating profit margin?

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What is a return on capital employed?

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What is the return on equity?

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What is the earning per share ratio formula?

This is given by:

(Net Income – Preferred Dividends) / Weighted Average Number of Common Shares

What is the price/earnings ratio formula?

This is given by:

(Net Income – Preferred Dividends) / Weighted Average Number of Common Shares

Read Next: 

The Three Most Important Financial Ratios for the Manager
What Is a Financial Ratio? The Complete Beginner’s Guide to Financial Ratios
What Is the Inventory Turnover Ratio? How Inventory Efficiency Can Fuel Business Growth

Resources for your business: 

What Is a Business Model? 30 Successful Types of Business Models You Need to Know
What Is a Business Model Canvas? Business Model Canvas Explained

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