Financial Formulas, section Financial Analysis Formulas in this section Formulas for financial analysis Accounting rate of return (ARR) Accounts receivable turnover Average day's purchases Cash conversion cycle (CCC) Cash flow interest coverage ratio Cash ratio Current ratio Days of sales outstanding (DSO) Days payables outstanding (DPO) Days sales in inventory (DSI) Debt-to-equity ratio Fixed assets turnover Fixed-charge coverage ratio Gross profit Gross profit margin (GPM) Interest coverage ratio Inventory turnover ratio Net profit margin (NPM) Operating cycle Operating income Operating profit margin (OPM) Quick ratio (or acid test ratio) Return on assets (ROA) Return on capital employed (ROCE) Return on equity (ROE) Return on total assets (ROTA) Total assets turnover Total debt-to-assets ratio
