Workflow Templates: Financial Ratio Analysis Checklist

Calculate the current ratio by dividing current assets by current liabilities.

Assess the quick ratio for a more stringent test of liquidity by excluding inventory from current assets and then dividing by current liabilities.

Evaluate the cash ratio by dividing cash and cash equivalents by current liabilities.

Determine the gross profit margin by dividing gross profit by total sales.

Calculate the operating profit margin by dividing operating income by total sales.

Assess the net profit margin by dividing net income by total sales.

Calculate the debt-to-equity ratio by dividing total liabilities by shareholders' equity.

Assess the interest coverage ratio by dividing earnings before interest and taxes (EBIT) by interest expenses.

Evaluate the debt ratio by dividing total liabilities by total assets.

Determine the inventory turnover ratio by dividing cost of goods sold by average inventory.

Calculate the accounts receivable turnover ratio by dividing net credit sales by average accounts receivable.

Assess the asset turnover ratio by dividing net sales by average total assets.

Calculate the price-to-earnings (P/E) ratio by dividing the market price per share by earnings per share (EPS).

Determine the dividend yield by dividing the annual dividends per share by the market price per share.

Assess the market-to-book ratio by dividing the market price per share by the book value per share.

Financial Ratio Analysis Checklist