Financial Ratios Tutorial http://www.investopedia.com/university/ratios/landing.asp Thank you very much for downloading the printable version of this tutorial.
As always, we welcome any feedback or suggestions. http://www.investopedia.com/contact.aspx Table Of Contents:
1) Liquidity Measurement Ratios
a) Current Ratio
b) Quick Ratio
c) Cash Ratio
d) Cash Conversion Cycle
2) Profitability Indicator Ratios
a) Profit Margin Analysis
b) Effective Tax Rate
c) Return On Assets
d) Return On Equity
e) Return On Capital Employed
3) Debt Ratios
a) Overview of Debt
b) Debt Ratio
c) Debt-Equity Ratio
d) Capitalization Ratio
e) Interest Coverage Ratio
f) Cash Flow To Debt Ratio
4) Operating Performance Ratios
a) Fixed Asset Turnover
b) Sales/Revenue Per Employee
c) Operating Cycle
5) Cash Flow Indicator Ratios
a) Operating Cash Flow/Sales Ratio
b) Free Cash Flow/Operating Cash Ratio
c) Cash Flow Coverage Ratio
d) Dividend Payout Ratio
6) Investment Valuation Ratios
a) Per Share Data
b) Price/Book Value Ratio
c) Price/Cash Flow Ratio
d) Price/Earnings Ratio
e) Price/Earnings To Growth Ratio
f) Price/Sales Ratio
g) Dividend Yield
h) Enterprise Value Multiple
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1) Liquidity Measurement Ratios
The first ratios we'll take a look at in this tutorial are the liquidity ratios. Liquidity ratios attempt to measure a company's ability to pay off its short-term debt obligations. This is done by comparing a company's most liquid assets (or, those that can be easily converted to cash), its short-term liabilities.
In general, the greater the coverage of liquid assets to short-term liabilities the better as it is a clear signal that a company can pay its debts that are coming due