1. Currentratio= CA/CL 2. Liquid ratio= (CA- Prepayment-inventory)/CL Gearing ratios 1. Gearing= TL/TA 2. Gearing= TL/TE 3. Interest Cover ratio= Operating Profit/Interest Investor ratios 1. EPS= NPAT/No of ordinary shares 2. PE ratio= Market share price/EPS 3. Dividend cover ratio...
10、ed assets depreciation rate = average net fixed assets divided by average fixed assets by 100%Two, the commonly used financial indicators specific application analysis1, liquidity ratioLiquidity is the ability of an enterprise to generate cash. It depends on the amount of liquid assets that ca...
of commonly used financial indicators I. Solvency Index (I) short-term solvency index 1. liquidity ratio = current assets / current liabilities 2. quick ratio = quick assets / current liabilities 3. cash flow ratio = annual net operating cash flow / current liabilities at the end of the ...
fixed assets depreciation rate = average net fixed assets divided by average fixed assets by 100% Two, the commonly used financial indicators specific application analysis 1, liquidity ratio Liquidity is the ability of an enterprise to generate cash, depending on the amount of liquid assets that ...
Definition - What is Debt Ratio? The debt ratio, also known as the total debt to total asset ratio, is asolvency ratiothat can provide insight into a company's financial health. Essentially, it allows you to calculate what portion of a company's assets has been financed by debt. ...
Degree of Financial Leverage = EBIT / (EBIT – Interest) In this formula, the ratio essentially shows how many times EBIT can cover the interest expense. A higher value indicates that the company generates significantly more operating income (EBIT) than the interest it needs to pay, which is...
The current ratio is a financial metric that measures the liquidity of a company by comparing the current assets belonging to a company to its current liabilities to determine if the liquid assets are sufficient to meet its short-term obligations coming due within twelve months (or one-year). ...
Financial Glossary Search View All Terms Price to Earnings Ratio (PE Ratio) The price to earnings ratio (PE Ratio) is the measure of the share price relative to the annual net income earned by the firm per share. PE ratio shows current investor demand for a company share. A high PE ra...
Part of the Series Guide to Financial Ratios What Is the Return on Assets (ROA) Ratio? Return on assets (ROA) is a financial ratio that indicates how profitable a company is relative to its totalassets. Corporate management, analysts, and investors can use the return on assets ratio to det...
The trailing P/E ratio will change as the price of a company’s stock moves because earnings are released only each quarter, while stocks trade whenever the market is open. As a result, some investors prefer the forward P/E. If the forward P/E ratio is lower than the tr...