ACCOUNTING FORMULAS

Account Receivable Turnover Net Sales / Average Accounts Receivable Accounts Payable Turnover Ratio Total Supplier Purchases / Average Accounts Payable Acid Test Ratio (Cash + Marketable Securities) / Current Liabilities Age Of Inventory 365 Days / Inventory Turnover Ratio

Average Inventory Period (Inventory X 365 Days) / Cost Of Sales Average Wage And Benefit Per Employee (Salaries + Wages + Benefits) / Number Of Employees Bad Debts Ratio Bad Debts / Accounts Receivable

Breakeven Point Fixed Costs / Contribution Margin

Capital Acquisition Ratio (Cash Flow From Operations - Dividends) / Cash Paid For Acquisitions Cash Balance (Cash X 365 Days) / (Cost Of Sales [Excluding Depreciation]) Cash Breakeven Point (Fixed Costs - Depreciation) / Contribution Margin Per Unit Cash Ratio Cash/Current Liabilities Common Size Percent (Analysis Amount/Base Amount) X 100 Current Ratio Assets / Liabilities

Days Sales In Inventory (Ending Inventory/Cost Of Good Sold) X 365

Days Sales Uncollected (Accounts Receivable / Net Sales) X 365

Debt To Equity Ratio Liabilities / Equity

Depletion Expense Depletion Per Unit X Units Extracted And Sold In Period

Depletion Per Unit Cost - Salvage Value / Total Units Of Capacity Depreciation Expense Depreciation Per Unit X Units Produced In Period Depreciation Per Unit Cost Salvage Value / Total Unit Of Production

Dividend Yield Annual Dividends Per Share / Price Per Share Double Declining Balance Depreciation 2 X Straight Line Depreciation Gross Profit Margin Ratio Gross Profit / Sales

Interest Cost Of Inventory Inventory X Interest Rate

Interest Coverage Ratio (Net Income + Interest) / Interest Inventory Turnover Ratio Cost Of Goods Sold / Average Inventory Net Cash Net Profit + Depreciation + Amortization Net Profit Margin Ratio (After Tax Margin Ratio) Net Profit After Tax / Sales

Payment Period (365 Days X Supplies Payable) / Inventory Price Earnings Ratio Market Price Per Common Share / Earnings Per Share Profit Margin Net Income / Net Sales Retained Earnings Growth Rate (Net Income - Dividends) / Common Shareholders' Equity
Return On Assets Net Income / Total Assets Return On Common Equity (Net Profit - Preferred Share Dividends) / (Shareholders Equity Preferred Shares) Return On Common Stockholders Equity (Net Income - Preferred Dividends) / Average Common Stockholders Equity Return On Investment Ratio

Net Profits Before Tax / Shareholders Equity Straight Line Method (Depreciation) (100% - Salvage Value) / Useful Life Years Times Interest Earned Income Before Interest Expense And Income Taxes / Interest Expense Total Asset Turnover Net Sales / Average Total Assets