The ratio of liabilities to stockholders' equity measures how much of the company is financed by debt and equity. It is computed as follows: RatioofLiabilitiestoStockholdersEquity=TotalStockholdersEquityTotalLiabilities To illustrate, the ratio of liabilities to stockholders' equity for Lincoln Company is computed as follows: For a recent five-year period, Nike's average ratio of liabilities to stockholders' equity was 0.6 . Lincoln's ratio of liabilities to stockholders' equity decreased from 0.6 to 0.4 during 20Y6. The lower ratio indicates that Lincoln's liabilities as a proportion of equity is decreasing. This is an improvement and indicates that the margin of safety for Lincoln's creditors is improving. 1. Working capital: Ratio Numerator Denominator Calculated Value 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover \begin{tabular}{cc} Ratio & Numerator \\ \hline & \\ Current ratio & \end{tabular} + Denominator = 18 A. B c D 1 A 8 14 15 16 17 18 19 20 21 22 23 24 25 26 5. Number of davs' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of Fxed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders' equity 14. Return on common stockholders' equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield