The Handy Financial Ratios Guide: A Comprehensive Guide to 140 Common Financial Ratios

True Tamplin

True Tamplin, Sep 29, 2022 - Business & Economics - 596 pages

The finance industry is a confusing space with lots of jargon and acronyms, and no single ratio tells you the full story of what is happening within a company.

This book is intended to function as a handy guide to understand 140 of the most common financial ratios.

The Handy Financial Ratios Guide is organized by 6 types of financial ratios:

1. Coverage Ratios

2. Efficiency Ratios

3. Liquidity Ratios

4. Profitability Ratios

5. Solvency Ratios

6. Valuation Ratios

Each ratio has an explanation of what it is, a formula for it is calculated, and an example of how it is used.

We have also included a QR code to the web version of each financial ratio which includes a calculator which allows you to plug in your own values.

Our hope is that this book can serve as a useful reference to those just getting started in the finance industry.

For more useful resources and tools, visit https://www.financestrategists.com.

 

Contents

• DEBT SERVICE COVERAGE RATIO CASH FLOW COVERAGE RATIO ASSET COVERAGE RATIO INTEREST COVERAGE RATIO PREFERR...: 47
• ASSET TURNOVER: 52
• SALES TO ADMINISTRATIVE EXPENSE SAE RATIO: 68
• DIVIDEND YIELD CAPITAL ASSET PRICING MODEL INTERNAL RATE OF RETURN: 72
• EQUITY MULTIPLIER: 85
• DAYS WORKING CAPITAL: 98
• SALES TO EQUITY RATIO: 114
• REPAIRS AND MAINTENANCE EXPENSE TO FIXED ASSETS: 127
• LIQUIDITY RATIOS: 139
• NET WORKING CAPITAL: 140
• CURRENT RATIO: 145
• QUICK RATIO CASH RATIO CASH CONVERSION CYCLE CCC WORKING CAPITAL RATIO ZSCORE DAYS SALES OUTSTANDING DSO A...: 149
• CAPITAL GAINS YIELD: 232
• CONTRIBUTION MARGIN: 240
• EARNINGS PER SHARE: 248
• PROFIT MARGIN: 256
• EARNINGS BEFORE INTEREST TAXES DEPRECIATION: 263
• RETURN ON INVESTMENT ROI: 270
• RETURN ON ASSETS ROA: 278
• CAPITALIZATION RATIO: 286
• RETURN ON NET ASSETS: 294
• OPERATING MARGIN RATIO: 302
• NET INTEREST MARGIN NIM: 310
• RETURN ON RETAINED EARNINGS RORE: 318
• MARGINAL REVENUE OPERATING LEVERAGE DOL GROSS MARGIN RATIO GOODWILL TO ASSETS RATIO NET OPERATING INCOM...: 326
• SOLVENCY RATIOS DEBT TO EQUITY 397: 397
• DEBT TO ASSET RATIO: 412
• LONG TERM DEBT TO CAPITALIZATION RATIO: 428
• DEBT TO NET WORTH RATIO: 443
• FINANCIAL LEVERAGE INDEX: 459
• FREE CASH FLOW TO EQUITY FCFE ANNUAL PERCENTAGE YIELD: 468
• DOUBLING TIME RULE OF 70: 505
• DIVIDEND PAYOUT RATIO: 513
• PRICE TO BOOK RATIO: 521
• HOLDING PERIOD RETURN HPR RETENTION RATIO PLOWBACK RATIO: 529
• SHARPE RATIO: 537
• RESIDUAL INCOME RI TREYNOR RATIO: 545
• NET FIXED ASSETS: 553
• ENTERPRISE VALUE EV ACCUMULATED DEPRECIATION TO FIXED ASSETS RATIO: 561

About the author

True Tamplin is on a mission to bring financial literacy into schools.

He is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is also a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a Bachelor of Science in business and data analytics.

To learn more about True, visit his personal website at https://www.truetamplin.com.

Bibliographic information

• Title: The Handy Financial Ratios Guide: A Comprehensive Guide to 140 Common Financial Ratios
• Author: True Tamplin
• Publisher: True Tamplin, 2022
• ISBN: 9798353691792
• Length: 596 pages
• Subjects: Business & Economics / Corporate Finance / Valuation