financial ratios

current ratio, quick ratio

want a ratio above one, current assets/current liabilities

less liquid because it does not include inventory. current assets-inventory/current liabilities

days sales outstanding, aging of accounts receivable, inventory turnover

annual revenue/365 = average revenue per day. accounts receivable/average revenue per day = days sales outstanding.

listing by category of how long the company has been waiting for its customers to pay bills

cost of goods sold/average inventory

gross profit/revenues

operating income/revenue

net income/revenues

net income/assets

net income/stock equity = return on equity

debt over equity

operating earnings (EBIT) / interest expense