1. Liquidity Ratios:
Current Ratio = Current Assets / Short-Term LiabilitiesAcid-Test Ratio = (Current Assets - Inventory) / Short-Term LiabilitiesCash Ratio = Cash and Cash Equivalents / Short-Term Liabilities
2. Financial Structure Ratios:
Debt Ratio = Total Liabilities / Total AssetsEquity Ratio = Equity / Total AssetsDebt/Equity Ratio = Total Liabilities / Equity
3. Activity Ratios:
Asset Turnover Ratio = Net Sales / Total AssetsReceivable Turnover Ratio = Net Sales / Trade ReceivablesInventory Turnover Ratio = Net Sales / Inventory
4. Profitability Ratios:
Return on Assets = Net Profit / Total Assets × 100Return on Equity = Net Profit / Equity × 100Net Profit Margin = Net Profit / Net Sales × 100