What is the interpretation if the ratio is RATIOFORMULARelatively Low?Relatively High? Liquidity Ratios

Current Ratio "Current Assets" /"Current Liabilities" Quick Ratio "Current Assets + Accounts Receivables" /"Current Liabilities" Avg. payment period (days)"Accounts Payable" /(("Cost of Goods Sold/365" ) ) Net Working CapitalCurrent Assets - Current Liabilities

Turnover Ratios

Avg. Collection Period (days)"Accounts Receivable" /(("Sales /365" ) ) Account Receivables TurnoverSales Account Receivables Days in Inventory"Inventory" /(("Cost of Revenue/365" ) ) Inventory turnover (times)"Cost of Goods Sold" /"Inventory"

Asset Management Ratios

Total Asset Turnover (times)"Sales" /"Total Assets" Fixed Asset Turnover (times)"Sales" /"Fixed Assets" Financial Leverage Ratios

Total DebtCurrent Debt + Long-term Debt Total debt to total assets"Current Debt + Long-term Debt" /"Total Assets" Total Liabilities to Total Asset"Total Liabilities" /"Total Assets" Interest Coverage "Operating Profits" /"Interest Expense" Profitability Ratios Gross margin"Sales - Cost of Goods Sold " /"Sales" Operating Profit Margin"Earnings Before Interest and Taxes " /"Sales" Net Profit Margin"Net Income " /"Sales" Investment Ratios

Return on (total) assets"Net Income" /"Total Assets" Return on Equity"Net Income" /"Shareholder Equity."

Capital Market Analysis Earnings per share (EPS)(Net Income)/(# of common shares outstaanding) Price/Earnings(Market Price per share)/(Earnings per share) Price/Book(Market Price per share)/(Revenue per share) Price/SalesPrice/Sales

Dividend Yield(Annual Dividend)/(Market Price/Share) Dividend Payout Ratio(Dividends )/(Net Income) or(Annual Dividend per share)/(Earnings per share) Growth %

Sustainable Growth %Return on Equity * (1- Dividend Payout Ratio)