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Formula: Current Ratio = \frac{Current Assets}{Current Liabilities} Explanation: Measures the ability of a company to pay its short-term obligations with short-term assets.

Formula: Quick Ratio = \frac{Current Assets - Inventory}{Current Liabilities} Explanation: Assesses a company's ability to meet short-term obligations with its most liquid assets.

Formula: Debt to Equity Ratio = \frac{Total Liabilities}{Shareholder's Equity} Explanation: Indicates what proportion of equity and debt a company is using to finance its assets.

Formula: Gross Profit Margin = \frac{Gross Profit}{Net Sales} Explanation: Shows the percentage of revenue that exceeds the cost of goods sold (COGS).

Formula: Net Profit Margin = \frac{Net Income}{Net Sales} Explanation: Measures how much net income is generated as a percentage of revenues received.

Formula: ROA = \frac{Net Income}{Average Total Assets} Explanation: Indicates how effectively a company uses its assets to generate profit.

Formula: ROE = \frac{Net Income}{Average Shareholder's Equity} Explanation: Measures profitability by showing how much profit a company generates with the money shareholders have invested.

Formula: EPS = \frac{Net Income - Dividends on Preferred Stock}{Average Outstanding Shares} Explanation: Represents the portion of a company's profit allocated to each share of common stock.

Formula: P/E Ratio = \frac{Market Value per Share}{Earnings Per Share (EPS)} Explanation: Indicates the dollar amount an investor can expect to invest in a company to receive one dollar of that company’s earnings.

Formula: Inventory Turnover = \frac{Cost of Goods Sold}{Average Inventory} Explanation: Measures the number of times inventory is sold or used in a time period.

Formula: Accounts Receivable Turnover = \frac{Net Credit Sales}{Average Accounts Receivable} Explanation: Measures how efficiently a company collects cash from credit sales.

Formula: Accounts Payable Turnover = \frac{Total Supplier Purchases}{Average Accounts Payable} Explanation: Measures how fast a company pays off its suppliers.

Formula: Interest Coverage Ratio = \frac{Earnings Before Interest and Taxes (EBIT)}{Interest Expenses} Explanation: Measures a company's ability to handle its interest payments.

Formula: Operating Margin = \frac{Operating Income}{Net Sales} Explanation: Reveals what percentage of a company's revenue is left over after paying for variable costs of production.

Formula: Cash Flow to Debt Ratio = \frac{Operating Cash Flow}{Total Debt} Explanation: Shows how long it would take for a company to pay off its debt if it devoted all of its cash flow to debt repayment.

Formula: Asset Turnover Ratio = \frac{Net Sales}{Average Total Assets} Explanation: Measures a company's ability to generate sales from its assets.

Formula: Payback Period = \frac{Initial Investment}{Annual Cash Inflow} Explanation: Calculates the time required to recoup the funds expended in an investment.

Formula: ROI = \frac{Net Profit}{Cost of Investment} Explanation: Measures the gain or loss generated on an investment relative to the amount of money invested.

Formula: Working Capital = Current Assets - Current Liabilities Explanation: Indicates the company's operational efficiency and its short-term financial health.

Formula: Fixed Asset Turnover = \frac{Net Sales}{Average Fixed Assets} Explanation: Measures how effectively a firm uses its fixed assets to generate sales.

Formula: Total Debt Ratio = \frac{Total Liabilities}{Total Assets} Explanation: Shows the proportion of a company’s assets that are financed by debt.

Formula: Equity Multiplier = \frac{Total Assets}{Total Shareholder's Equity} Explanation: Measures the proportion of the firm's assets that are financed by stockholders' investments.

Formula: GMROI = \frac{Gross Margin}{Average Inventory Cost} Explanation: Assesses a company's ability to turn inventory into cash above the cost of the inventory.

Formula: Net Asset Turnover = \frac{Net Sales}{Average Total Assets - Average Current Liabilities} Explanation: Measures the efficiency of a company’s use of its assets in generating sales revenue.

Formula: Times Interest Earned = \frac{Earnings Before Interest and Taxes (EBIT)}{Interest Expense} Explanation: A metric that shows how many times a company could pay the interest with its before-tax income.

Formula: Net Working Capital Ratio = \frac{Net Working Capital}{Net Sales} Explanation: Measures the liquidity of a company by comparing its net working capital to its sales.

Formula: Dividend Yield = \frac{Annual Dividends Per Share}{Price Per Share} Explanation: Indicates how much a company pays out in dividends each year relative to its share price.

Formula: Dividend Payout Ratio = \frac{Total Dividends}{Net Income} Explanation: The fraction of earnings paid to shareholders in dividends.

Formula: Price to Sales Ratio = \frac{Market Capitalization}{Total Sales or Revenue} Explanation: Measures the value investors place on a company for each dollar of revenue generated.