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Formula: $\frac{Current Assets}{Current Liabilities}$ Interpretation: Measures a company's ability to pay short-term obligations.

Formula: $\frac{Current Assets - Inventory}{Current Liabilities}$ Interpretation: Indicates a company's capacity to pay off short-term liabilities without selling inventory.

Formula: $\frac{Total Liabilities}{Shareholders' Equity}$ Interpretation: Shows the proportion of equity and debt a company is using to finance its assets.

Formula: $\frac{Net Income}{Shareholders' Equity}$ Interpretation: Measures profitability by showing how much profit a company generates with the money shareholders have invested.

Formula: $\frac{Net Income}{Total Assets}$ Interpretation: Indicates how efficiently a company uses its assets to generate earnings.

Formula: $\frac{Net Income - Dividends on Preferred Stock}{Average Outstanding Shares}$ Interpretation: Shows the profit allocated to each share of common stock.

Formula: $\frac{Market Value per Share}{Earnings Per Share}$ Interpretation: Compares a company's share price to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Formula: $\frac{Market Price per Share}{Book Value per Share}$ Interpretation: Compares the market value of a company's shares to its book value, indicating if the stock is undervalued or overvalued.

Formula: $\frac{Market Capitalization}{Annual Sales}$ Interpretation: Shows how much investors are willing to pay for each dollar of sales, providing a valuation metric when profits are negative.

Formula: $\frac{Market Capitalization}{Cash Flow from Operations}$ Interpretation: Measures the value of a stock’s price relative to its operating cash flow per share.

Formula: $\frac{Annual Dividends per Share}{Price per Share}$ Interpretation: Shows how much a company pays out in dividends relative to its share price.

Formula: $\frac{Earnings Before Interest and Taxes (EBIT)}{Interest Expense}$ Interpretation: Measures a company's ability to handle its interest payments.

Formula: $\frac{Cost of Goods Sold}{Average Inventory}$ Interpretation: Shows how many times a company's inventory is sold and replaced over a period.

Formula: $\frac{Net Credit Sales}{Average Accounts Receivable}$ Interpretation: Measures how efficiently a company collects on its sales on credit.

Formula: $\frac{Net Sales}{Average Total Assets}$ Interpretation: Indicates how efficiently a company uses its assets to generate sales.

Formula: $\frac{Operating Income}{Net Sales}$ Interpretation: Measures the proportion of a company's revenue left over after paying for variable costs of production.

Formula: $\frac{Net Income}{Net Sales}$ Interpretation: Shows the percentage of revenue that becomes profit after all expenses are paid.

Formula: $\frac{Net Sales - Cost of Goods Sold}{Net Sales}$ Interpretation: Represents the percent of total sales revenue that the company retains after incurring direct costs associated with producing the goods it sells.

Formula: $\frac{Net Profit}{Investment}$ Interpretation: Represents the profitability from an investment, showing the efficiency of an investment in generating income.

Formula: $\frac{Operating Cash Flow}{Total Debt}$ Interpretation: Assesses a company's ability to cover its debt with its operating cash flow.

Formula: $Days Inventory Outstanding + Days Sales Outstanding - Days Payable Outstanding$ Interpretation: Measures how quickly a company can convert its investments in inventory to cash through sales.

Formula: $\frac{Earnings Before Interest and Taxes (EBIT)}{Interest Expense}$ Interpretation: Indicates how many times a company can cover its interest charges with its pre-tax earnings.

Formula: $\frac{Net Operating Income}{Total Debt Service}$ Interpretation: Assesses a company's ability to use its operating income to repay all its debt obligations, including repayment of principal and interest.

Formula: $\frac{Dividends per Share}{Earnings per Share}$ Interpretation: Shows the percentage of earnings distributed to shareholders in the form of dividends.

Formula: $\frac{Retained Earnings}{Market Capitalization}$ Interpretation: Indicates what portion of the market value comes from earnings that were not paid out as dividends.

Formula: $\frac{Current Assets}{Current Liabilities}$ Interpretation: Identical to Current Ratio; measures a company's efficiency and its short-term financial health.

Formula: $\frac{Total Liabilities}{Total Assets}$ Interpretation: Indicates the proportion of a company’s assets that are financed by debt.

Formula: $\frac{Total Assets}{Total Equity}$ Interpretation: Shows the amount of assets financed by each unit of equity; it's another version of the leverage ratio.

Formula: $\frac{Net Sales}{Net Fixed Assets}$ Interpretation: Shows how efficiently a company uses its fixed assets to generate sales.

Formula: $\frac{Average Accounts Receivable}{Total Credit Sales} \times Number of Days$ Interpretation: Reveals how many days it takes a company to collect payment after a sale.

Formula: $\frac{Average Accounts Payable}{Cost of Goods Sold} \times Number of Days$ Interpretation: Indicates how long a company takes to pay its invoices from trade creditors, such as suppliers.

Formula: $\frac{Average Inventory}{Cost of Goods Sold} \times Number of Days$ Interpretation: Measures how long it takes for a company to turn its inventory into sales.

Formula: $\frac{Net Sales - Cost of Goods Sold}{Net Sales}$ Interpretation: Shows the percentage of revenue exceeding the cost of goods sold, which can be used for paying other expenses or as profit.

Formula: $\frac{Shareholder's Equity - Preferred Equity}{Total Outstanding Shares}$ Interpretation: Shows the value of a company's equity that is attributable to each share of stock.

Formula: $\frac{Earnings Before Interest and Taxes (EBIT)}{Total Assets - Current Liabilities}$ Interpretation: Measures a company's profitability and the efficiency with which its capital is employed.

Formula: $\frac{Operating Cash Flow}{Total Debts}$ Interpretation: Assesses a company's ability to satisfy debts with operating cash flow alone.