5g: Financial Ratios

Financial Ratios Library
A menu of financial health measures from which to select for providing insights into various scenarios.  

GIST: https://gist.github.com/CHatmaker/19caa8b52144de03edf0e08de6765cfc

Here is what is included in the Financial Library.

Liquidity Ratios

• CurrentRatioλ - Measures ability to pay short-term obligations

• QuickRatioλ - Measures ability to meet short-term obligations

• CashRatioλ - Evaluates ability to repay short-term debt w/cash or near-cash resources

• OperatingCashFlowRatioλ - Measures how readily current liabilities are covered by cash flows generated from operations.

• ReceivablesTurnoverRatioλ - Indicates effectiveness in collecting outstanding balances from clients and managing line of credit process

• InventoryTurnoverRatioλ - Shows how many times a company turned over its inventory relative to its cost of goods sold

• WorkingCapitalTurnoverRatioλ - Working Capital Turnover Ratio measures how efficiently a company is using its working capital to support sales and growth

Leverage Ratios

• DebtRatioλ - Measures the extent of a company's leverage

• DSCRλ - Debt service coverage Ratio measures a firm’s available cash flow to pay its current debt obligations

• DebtToCapitalRatioλ - Gives analysts and investors a better idea of a company's financial structure and whether or not the company is a suitable investment

• EquityMultiplierλ - Measures the portion of a company’s assets financed by shareholders'equity rather than by debt

Solvency Ratios

• DebtToEquityRatioλ - Measures the degree to which a company is financing operations with debt rather than its own resources.

• DebtToAssetRatioλ - Analysts can compare one company's leverage with that of other companies in the same industry.

• InterestCoverageRatioλ - Determines how easily a company can pay interest on its outstanding debt

• EquityRatioλ - Measures the long-term solvency of a company by comparing its shareholders’ equity to its total assets

Efficiency Ratios

• AssetTurnoverRatioλ - Measures the value of a company's sales or revenues relative to the value of its assets.

• DSIRatioλ - Days Sales in Inventory Ratio (aka Average age of inventory indicates the average time in days that a company takes to turn its inventory

• OperatingRatioλ - Shows how efficient management is at keeping costs low while generating revenue

Profitability Margins & Ratios

• GrossMarginλ - Shows how much profit a company makes after paying off its Cost of Goods Sold

• EBITDAMarginλ - Measures a company's operating profit as a percentage of its revenue

• OperatingMarginλ - Measures how much profit a company makes on a dollar of sales after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax

• PretaxMarginλ - Measures the operating efficiency of a company

• NetProfitMarginλ - Measures how much net income or profit a company generates as a percentage of its revenue.

• CashFlowMarginλ - Cash Flow Margin is a trusted metric of a company’s profitability and efficiency and its earnings quality

• ROAλ - *Return on Assets Indicates how profitable a company is in relation to its total assets

• ROEλ - *Return on equity is a measure of financial performance

• ROIλ - Return on Investment ratio measures the profitability of an investment by comparing the gain or loss to its cost

• ROICλ - Return on Invested capital assesses a company’s efficiency in allocating capital to profitable investments

Market Value Ratios

• PriceEarningsRatioλ - *Price-earnings Ratio measures a company's share price relative to its earnings per share

• PriceToBookRatioλ - Many investors use the price-to-book ratio (P/B ratio) to compare a firm's market capitalization to its book value and locate undervalued companies.

• PriceToSalesRatioλ - Price to Sales (P/S) Ratio is an indicator of the value that financial markets have placed on each dollar of a company's sales or revenues

• PriceToCashRatioλ - Price to Cash (P/CF) Ratio is a stock valuation indicator or multiple that measures the value of a stock’s price relative to its operating cash flow per share

• BVPSλ - Book value per share ratio is an indicator of the value of a company’s stock

• CAPERatioλ - Uses real earnings per share (EPS) over a 10-year period to smooth out fluctuations in corporate profits that occur over different periods of a business cycle (aka Shiller PE Ratio)

• DividendPayoutRatioλ - Dividend Payout Ratio is the percentage of earnings paid to shareholders via dividends

• DividendYieldRatioλ - Dividend yield ratio shows how much a company pays out in dividends

• EPSλ - Earnings per share measures profitability indicating how much profit each outstanding share of common stock has earned

• RetentionRatioλ - Retention Ratio is the proportion of earnings kept back in the business as retained earnings