Business Finance & Ratios

Analyze liquidity, leverage, efficiency, and profitability; compute pricing and discounts; and model loans, depreciation, and currency effects for everyday decisions.

Business Loan

Amortization & balloons.

Depreciation

Straight-line & MACRS.

Break-Even

CM vs. fixed costs.

Commission

Tiered/flat plans.

Percentage

Change & part-whole.

Discounts

Stack & reverse.

Inflation

Deflate/inflate values.

Currency

Spot conversions.

Current Ratio

Working capital view.

Quick Ratio

Exclude inventory.

Cash Ratio

Most conservative.

Debt-to-Assets

Leverage vs. assets.

Debt-to-Equity

Capital structure.

Interest Coverage

EBIT vs. interest.

Inventory Turnover

COGS & DOH link.

Receivables Turnover

Collections & DSO.

Total Asset Turnover

Revenue per asset.

ROA

Profit vs. assets.

ROE

Drivers of return.

P/E

Price vs. earnings.

P/B

Price vs. book.

P/S

Price vs. sales.

Dividend Yield

Forward/trailing.

EPS

Basic & diluted.

DuPont

ROE breakdown.

EVA

Residual income.

Altman Z

Bankruptcy risk.

SGR

ROE & payout.

HHI

Market concentration.