**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 desired ratio to go to the ratio formula and
explanation page.

Click on the following or an
alphabetic search:

**- A
-**

** 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
z-score. **

**Audit Ratio.**

**Average Collection Period.**

**Average
Inventory Period.**

**Average Obligation Period.**

**Average Wage and Benefit Cost per
Employee.**

**- B -**

**Bad
Debts Ratio.**

**Breakeven Point.**

**- C
-****
**

**Capital
Acquisition Ratio.**

**Capital Employment
Ratio.**

**Capital Reinvestment
Ratio.**

**C****apital
Structure Ratio****.**

**Capital to
Non-Current Assets.**

**Cash and Marketable
Securities to Current Liabilities ( a.ka. 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.**

**- D -**

**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).**

**- E -**

**EBIT
to Sales.**

**Employment Change.**

**Equipment Replacement
Ratio.**

**Equipment Upkeep
Ratio.**

**Equity Multiplier.**

**Expenses to Current
Assets.
**

**- F -**

**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.**

**- G -**

**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.
**

** I -**

**I****ncrease
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.**

**- L -****
**

**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.**

**-
M -**

**Margin
of Safety.**

**-
N -
**

**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.**

**Non-Current
Assets to Non-Current Liabilities.**

**Non-Operating
Income to Net Income.**

**Number
of Days Inventory.**

**-
O -**

**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.**

**-
P -
**

**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.**

**- Q - **

**
Quality Ratio**

**
Quick Assets**

**
Quick Ratio**

**-R
-**

**Repairs
and Maintenance to Associated Assets.**

**Residual
Income to Net Income.**

**Retained
Earnings to Total Assets.**

**Return
on Assets.**

**Return
on Investment.**

**Return
on Sales (a.k.a. Profit Margin Ratio).**

**Revenues
per Employee.**

**-
S -**

**Sales
Return and Allowance to Sales.**

**Sales
to Net Income.**

**Sales
to Accounts Payable.**

**Sales
to Break-Even 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.**

** T
-**

**Times
Interest Earned (a.k.a. Interest Coverage Ratio).**

**Trend
in Sales.**

**Training
Costs per Employee.**

**-
W -**

**Working
Capital.**

**Working
Capital From Operations to Total Liabilities.**

**Working
Capital Provided by Net Income.**

**-
Y -**

**Years
Debt.
**

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