Financial Ratios Analysis and Formulas

Here are the top financial ratios every manager should track and report:

  1. Net Profit Margin
  2. Return on Assets (ROA)
  3. Return on Equity (ROE)
  4. Inventory Turnover
  5. Days Inventory Outstanding
  6. Average Collection Period
  7. Operating Cycle
  8. Fixed Asset Turnover
  9. Total Asset Turnover
  10. Working Capital Turnover
  11. Debt Ratio
  12. Debt to Equity Ratio
  13. Times Interest Earned