Finаnciаl Rаtiоs Fоrmula Sheet Shоrt-term Solvency, or Liquidity Ratios:1. Current Ratio = Current Assets / Current Liabilities2. Quick Ratio = (Current Assets - Inventory) / Current Liabilities3. Cash Ratio = Cash / Current LiabilitiesLong-term Solvency Ratios:4. Debt-Equity Ratio = Total Debt / Total Equity5. Total Debt Ratio = (Total Assets - Total Equity) / Total Assets6. Long-term Debt Ratio = Long-term Debt / (Long-term Debt + Total Equity)7. Times Interest Earned = EBIT / Interest8. Interest Coverage Ratio = (EBIT + Depreciation) / InterestAsset Management, or Turnover Ratios:9. Inventory Turnover = Cost of Goods Sold / Inventory10. Days Sales in Inventory = 365 / Inventory Turnover11. Receivables Turnover = Sales / Accounts Receivable12. Days Sales Outstanding = 365 / Receivables Turnover13. Payables Turnover = Cost of Goods Sold / Accounts Payable14. Days Payable Outstanding = 365 / Payables Turnover15. Total Asset Turnover = Sales / Total AssetsProfitability Ratios:16. Profit Margin = Net Income / Sales17. Return on Assets (ROA) = Net Income / Total Assets18. Return on Equity (ROE) = Net Income / Total Equity19. Effective Tax Rate = Income Tax Expense / Income Before Tax20. Profitability Index = NPV/Resources Consumed NPV = Initial Cashflows – Present Value of future cashflows Discount rate = 1/(1+r)^t