List of Ratios Formulas and Definitions on This
Website:
Listed are the financial, accounting and business
ratios pages that contain formulas to calculate ratios,
definitions and explanations.
Click on the following for an
alphabetic search:
ABCDEFGILMNOPQRSTWY
Click
on  A
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Acid
Test Ratio (a.k.a. Quick Ratio).
Accounts
Receivable Turnover.
Advertising to Net Income.
Advertising to Sales.
After Tax Margin / After Tax
Profit Margin (see
Profit Margin Ratios).
Age of Inventory.
Altmanâ€™s zscore.
Audit Ratio.
Average Collection Period.
Average
Inventory Period.
Average Obligation Period.
Average Wage and Benefit Cost per
Employee.
Click
on 
B
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Bad
Debts Ratio.
Breakeven Point.
Click
on 
C
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Capital
Acquisition Ratio.
Capital Employment
Ratio.
Capital Reinvestment
Ratio.
Capital
Structure Ratio.
Capital to
NonCurrent Assets.
Cash and Marketable
Securities to Current Liabilities (a.k.a. Cash Ratio).
Cash and Marketable
Securities to Working Capital.
Cash
Balance Ratio.
Cash Breakeven Point.
Cash
Debt Coverage.
Cash
Dividend Coverage.
Cash
Flow from Operations to Net Income.
Cash
Flows for Investing vs. from Operations and Financing.
Cash
Flows for Investing vs. Financing.
Cash
Flow from Sales to Sales.
Cash Flow Ratio.
Cash
Flow to Debt.
Cash Flow to Long
Term Debt.
Cash Flows from
Operations to Current Portion of Long Term Debt.
Cash Flows from
Operations to Total Debt and Equity.
Cash
Maturity Coverage.
Cash
Ratio (a.k.a. Cash and Marketable Securities to
Current Liabilities).
Cash
Reinvestment Ratio.
Cash
Return on Assets (Including and Excluding Interest).
Cash
Return to Shareholders.
Cash
Turnover Ratio.
Collection
Period (a.k.a. Days Sales Outstanding or DSO
Ratio).
Collection
Period to Payment Period.
Contribution Margin.
Contribution
Margin Ratio.
Current
Ratio.
Current Liabilities
to Sales.
Current Return on
Training and Development.
Click
on 
D
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Daily
Savings in Delayed Cash Payments.
Days of Liquidity.
Days
Sales Outstanding (a.k.a. DSO Ratio or Collection
Period).
Debt to Assets.
Debt
to Equity Ratio (a.k.a. Gearing Ratio or Leverage
Ratio).
Debt
Ratio.
Defensive Interval
Period.
Discretionary Costs
as a Percent of Sales.
Dividend Yield.
DSO
Ratio (a.k.a. Days Sales Outstanding or Collection
Period).
Click
on 
E
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
EBIT
to Sales.
Employment Change.
Equipment Replacement
Ratio.
Equipment Upkeep
Ratio.
Equity Multiplier.
Expenses to Current
Assets.
Click
on 
F
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Financial
Leverage Ratio.
Fixed Assets to Short Term Debt.
Fixed
Charge Coverage.
Fixed Costs (Excluding
Labor) per
Employee.
Fixed Cost per Employee.
Fixed Costs to Total Assets.
Fixed Costs to Total Labor.
Fixed Coverage.
Fixed Labor to Total Labor.
Click
on 
G
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Gearing
Ratio (a.k.a. Debt to Equity Ratio or Leverage
Ratio).
Gross Profit Margin.
Growth
in Productivity and Knowledge Assets.
Growth Rate in Earnings per Share.
Growth Rate in Retained
Earnings.
Click
on 
I
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Increase
in Wages and Salaries per Employee.
Income to Assets.
Interest
Cost of Inventory.
Interest
Coverage (a.k.a. Times Interest Earned).
Inventory
Conversion Ratio.
Inventory
Turnover.
Click
on 
L
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Labor
Costs to Net Income.
Labor
Costs to Sales.
Labor
Costs to Total Costs.
Leverage
Ratio (a.k.a. Gearing Ratio or Debt to Equity Ratio).
Liquidity
Index.
Long
Term Debt to Shareholders Equity.
Long
Term Return on Training and Development.
Click
on 
M
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Margin
of Safety.
Click
on 
N to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Net
Cash Flows for Investing.
Net
Income Increases to Pay Increases.
Net
Income per Employee.
Net
Income to Assets.
Net
Income to Fixed Charges.
Net
One Time Gains to Income.
Net
One Time Gains to Sales.
Net
Profit Margin (see Profit
Margin Ratio).
Net
Sales per Employee.
Net
Sales to Gross Sales.
NonCurrent
Assets to NonCurrent Liabilities.
NonOperating
Income to Net Income.
Number
of Days Inventory.
Click
on 
O
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Office
Supplies and Repairs per Employee.
Operating
Cycle.
Operating
Income to Wages and Salaries.
Operating
Leverage.
Operating
Margin or Operating Profit Margin (see also Profit
Margin Ratio).
Operations
Cash Flow to Current Liabilities.
Operations
Cash Flow Plus Fixed Charges to Fixed Charges.
Operations
Cash Flow Plus Interest to Interest.
Overhead
to Direct Labor.
Overhead
to Variable Costs.
Click
on 
P
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Payment
Period.
Payment
Period to Average Inventory Period.
Payment
Period to Operating Cycle.
Percentage
Change in Operating Income vs. Sales Volume.
Percent
Change in People Employed.
Percent
Export Earnings.
Percent
Export Revenues.
Percent
Growth in Productivity and Knowledge Assets.
Percent
Increase in Wages and Salaries
per Employee.
Percent
Unstable Foreign Assets.
Percent
Unstable Foreign Earnings.
Percent
Unstable Foreign Revenues.
Phone
Costs per Employee.
Pretax
Margin or Pretax Profit Margin (see Profit
Margin Ratio).
Price/Earnings
Ratio.
Productivity
and Knowledge Assets.
Productivity
and Knowledge Contributed per Employee.
Productivity
and Knowledge Contribution.
Profit
Margin Ratio (a.k.a. Return on Sales).
Profits
per Employee.
Click
on 
Q
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Quality
Ratio.
Quick
Assets.
Quick
Ratio
(a.k.a. Acid Test Ratio).
Click
on 
R
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Repairs
and Maintenance to Associated Assets.
Residual
Income to Net Income.
Retained
Earnings to Total Assets.
Return
on Assets.
Return on
Common Equity
Return
on Investment.
Return
on Sales (a.k.a. Profit Margin Ratio).
Revenues
per Employee.
Click
on 
S
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Sales
Return and Allowance to Sales.
Sales
to Net Income.
Sales
to Accounts Payable.
Sales
to BreakEven Point.
Sales
to Cash.
Sales
to Current Assets.
Sales
to Fixed Assets.
Sales
to Total Assets.
Sales
to Working Capital.
Short
Term Debt to Depreciation.
Short
Term Debt to Liabilities.
Short
to Long Term Debt.
Click
on 
T
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Times
Interest Earned (a.k.a. Interest Coverage Ratio).
Trend
in Sales.
Training
Costs per Employee.
Click
on 
W
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Working
Capital.
Working
Capital From Operations to Total Liabilities.
Working
Capital Provided by Net Income.
Click
on 
Y
 to get to the following business, financial and
accounting ratio formulas. This provides the formula and
meaning for calculating and interpreting the financial
ratios.
Years
Debt.
