Corporate Finance project

Current ratio = Current assets ÷ Current liabilities

Quick ratio = (Current assets – Inventory) ÷ Current liabilities

Cash ratio = Cash ÷ Current liabilities

Total debt ratio = Total debt ÷ Total assets = (Total assets – Total equity) ÷ Total assets

Debt-equity ratio = Total debt ÷ Total equity

Equity multiplier = Total assets ÷ Total equity = 1 + debt-equity ratio

Times interest earned = Earnings before interest and taxes ÷ Interest

Cash coverage = (Earnings before interest and taxes + depreciation + amortization) ÷ Interest

Inventory turnover = Cost of goods sold ÷ Inventory

Days sales in inventory = 365 ÷ Inventory turnover

Receivables turnover = Sales ÷ Receivables

Days’ sales in receivables= 365 ÷ Receivables turnover

Total asset turnover = Sales ÷ Total assets

Days in inventory = Days in period ÷ Inventory turnover

Profit margin = Net income ÷ Sales

Return on assets = Net income ÷ Total assets

Return on equity = Net income ÷ Total equity

EBITDA margin = EBITDA ÷ Sales

Price-to-earnings ratio = Market price per share ÷ Earnings per share

Market-to-book ratio = Market price per share ÷ Book value per share

Market capitalization = Market price per share x Shares Outstanding

Enterprise Value (EV) = Market capitalization + Market value of interest bearing debt – cash

EV Multiple = EV ÷ EBITDA