Current ratio :

	Current Assets / Current Liabilities
	2 : 1

Acid Test Ratio :

	(Cash + Accounts Receivable) / Current Liabilities
	1 : 1

Debt/Equity Ratio :

	Total Liabilities / Owners (Stock) Equity
	Lower than 2:1

Times Interest Earned :

	Net income before Interest & Taxes / Interest Expense
	5:1

 Net Income ratio :

	Net Income / Sales
	More than 10 cents on the dollar

Gross margin ratio :

	Gross Margin / Sales
	Gross margin = Sales – Cost of sales

Asset Turnover Rate :

Sales / Total Assets

Accounts Receivable Turnover :

	Sales / Average Accounts Receivable
	Lower than 60 days

Number of Days Sales in Receivables :

	Average Accounts Receivable / (Annual Sales / 360)
	Any number above 30 indicates past due accounts

Inventory Turnover :

	Cost of Sales / Average Inventory
	25 c for each 1$ held in inventory

Return on assets :

	Net Income / Total Assets
	More than 10%

Return on equity :

Net Income / Stockholders Equity

Earnings per share :

Earnings after taxes / Number of Shares Outstanding

Price/Earnings Ratio :

Price / Earnings per share

P/E Reciprocal :

Earnings per share / Price

Total Market Cap :

Number of Outstanding Shares x Market Price per Share