Answer to Question #237401 in Accounting for Kiki

Question

List the different types and formulas for the following ratios:
2.1 Capital Structure (Leverage) Ratios (10)
2.2 Profitability Ratios (10)
2.3 Liquidity Ratios

Answer 1

2.1 Capital Structure (Leverage) Ratios

1.Debt-to-Equity Ratio$=\frac{Total Debt}{Total Equity}$

2.Debt-to-Assets Ratio$=\frac{Total Debts}{Total Assets}$

3.Debt-to-Capital Ratio$=\frac{Today Debt}{Total Debts + Total Equity}$

4.Assets-to-Equity Ratio$=\frac{Total Assets} {Total Equity}$

5.Debt-to-EBITDA Ratio$=\frac{Total Debt}{Earnings Before Interest Taxes Depreciation and Amortization}$

2.2 Profitability Ratios

1.Return on Assets$=\frac{Net Income} {Average Total Assets}$

2.Return on Equity$=\frac{Net Income} {Average Stockholder Equity}$

3.Profit Margin$=\frac{Net Income} {Sales}$

4.Earnings Per Share$=\frac{Net Income} {Number of Common Share Outstanding}$

2.3 Liquidity Ratios

1.Current Ratio$=\frac{Current Assets} {Current Liabilities}$

2.Quick Ratio$=\frac{Quick Assets} {Current Liabilities}$

3.Net Working Capital Ratio$=\frac{Current Assets - Current Liabilities}{Total Assets}$

4.Cash Ratio$=\frac{Cash}{Current Liabilities}$

5.Operating Cash Flow Ratio$=\frac{Operating Cash Flow} {Current Liabilities}$

6.Cash Coverage Ratio$\frac{Earnings Before Interest and Taxes + Depreciation} {Interest}$