Stock Ratios

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

For the Lord gives wisdom; from his mouth come knowledge and understanding; - Proverbs 2:6