Accounting Formulas

• Current Ratio = Current Assets / Current Liabilities
• Quick Ratio = Cash + Marketable Securities + Accounts Receivable / Current Liabilities
• Debt to Equity Ratio = Total Liabilities / Total Equity
• Debt Ratio = Total Liabilities / Total Assets
• Interest Coverage Ratio = Operating Income / Interest Expense
• Gross Profit Ratio / Margin = Gross Profit / Net Sales
• Net Profit Ratio / Margin = Net Income / Net Sales
• Operating Ratio = Operating Income / Net Sales
• Return on Assets = Net Income / Total Assets
• Return on Equity = Net Income / Owner's Equity
• Gross Profit = Net Sales - Cost of Goods Sold
• Net Sales = Sales - (Sales Discount+ Sales Return & Allowances)
• Operating Income = All expenses - gross profit (interest expense not included)