Introduction
What is Ratio Analysis?
Why Use Ratio Analysis?
Types of Ratios
A Best Practice Approach to Ratio Analysis
Critical Tips for Effective Ratio Analysis
Trend (Horizontal) Analysis
The lImportance of Visualizing Trends
Benchmarking
II. Return, Profitability, and Expense Ratios
Return Ratios: Return on Equity(ROE)
Return Ratios: Return on Assets (ROA)
Return Ratios; Return on Invested Capital (ROIC)
Profitability Ratios: Gross Margin
Profitablity Ratios: Operating Profit Margin
Profitability Ratios: Net Profit Margin
Expense Ratios: Effective Interest Rate
Expense Ratios: Interest Burden
Expense Ratios: Effective Tax Rate
Expense Ratios: Tax Burden
III. Asset Utilization Ratios
Total Asset Turnover
Property, Plant 8 Equipment Turnover
Cash Turnover & Days
Accounts Receivable Turnover & Days
Inventory Turnover & Days
Accounts Payable Turnover & Days
IV. Solvency Ratios
Total Assets to Equity
Debt to Equity
Debt to Tangible Net Worth
Debt to EBITDA
V.Liquidity Ratios
Current Ratio
Quick Ratio
EBITDA to lnterest
VI. The DuPont Pyramid of Ratios
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