Profitability Ratios
Gross Profit Margin
Gross Profit Margin = (Net Sales − COGS) / Net Sales
EBITDA
EBITDA = Net Income + Taxes + Interest Expense + Depreciation + Amortization
Liquidity Ratios
Current Ratio
Current ratio = Current assets / Current liabilities
Acid-Test Ratio
Acid-test ratio = Current assets – Inventories / Current liabilities
Market Value Ratios
Price/Earnings Ratio
Price-earnings ratio = Share price / Earnings per share
