Profitability Ratios (1) Net Profit Margin -Net Income X 100 (2) Gross Profit Percentage-Net Sales-Cost of Goods Sold X 100 (3) Fixed Asset Turnover = -NetRevenue- Revenues Net sales Revenue Average Net Fixed Assets (4) Return on Equity (ROE) Net Income - Preferred Dividends -X100 Average Common Stockholders' Equity (5) Earnings per Share (EPS)--NetIncome. Preferred Dividends Average Number of Common Shares Outstanding (6) Price/Earnings Ratio Stock Price EPS Liquidity Ratios (7) Receivables TurnoverNet Sales Revenue Average Net Receivables 365 Days to Collect = Receivables Turnover Ratio Cost of Goods Sold Average Inventory (8) Inventory Turnover 365 Inventory Turnover Ratico Days to Sell (9) Current Ratio-Current Assets Current Liabilities Solvency Ratios (10) Debt-to-Assets Total Liabilities Total Assets pense (11) Times Interest Earned-Net Income+Interest Expense+ Income Tax Ex