Essential Financial Ratios and Performance Metrics

Short-Term Liquidity Ratios

• Current Ratio: CA / CL
• Quick Ratio: (CA - Inventory) / CL
• Acid Test: Cash / CL
• Working Capital (WC): CA - CL (If WC > 0, the company has liquidity to pay short-term debt)
• Minimum Working Capital (WCmin): RMmin + SFGmin + FGmin + CLmin + Cashmin - SUPPmin
• Balance Minimum: (Period * Activity) / 360
• Net Cash Flow (CF): WC - WCmin (>0 availability / <0 deficit)
• Basic Financial Ratio: (FA + WC) / (FA + WCmin) (>0 means resources exceed needs)
• Cash Flow Days: Avg Cash Balance / Avg Daily Expense to Pay

Solvency and Asset Structure

• Solvency: Assets / Liabilities
• Asset Structure: NCA:A / CA:A / CA:NCA / WC:NCA
• Financial Structure: L:(E+L) / E:(E+L) / CL:(E+L) / (NCL+E):(E+L)
• Permanent Resources Structure: E:PR / NCL:PR
• Economic Financial: (Annual Amortization + Depreciation) / FA

Indebtedness Ratios

• Gearing Ratio: Liabilities / Equity
• Long-Term Indebtedness: NCL / Equity
• Short-Term Indebtedness: CL / Equity
• Indebtedness Structure: NCL / CL
• Banking Indebtedness: Banking Liabilities / Equity
• Interest Coverage: EBIT / Financial Expenses
• Debt Repayment Capacity: EBIT / Liabilities
• EBITDA: Sales - Cost of Sales - Selling & Admin Expenses + Depreciation + Amortization

Self-Financing and Productivity

• Total Self-Financing: Reserves / Equity
• Self-Financing for Growth: (Retained Earnings + Amortization & Depreciation) / Increase in FA
• Total Factor Productivity (TFP): p0(q1-q0) - C0(f1-f0) (>0 indicates productivity improvement)

Break-Even Point (BEP) and Efficiency

• BEP (Units): q* = Cf / (p - cv) where (p - cv) is the contribution margin
• BEP (Monetary): Cf / (1 - %)
• Fixed Cost Ratio: (q* / q) * 100
• Commercial Efficiency Ratio: (q - q*) / q * 100
• Variable Cost Security Ratio: Profit / cv * 100
• Fixed Cost Security Ratio: Profit / cf * 100

Leverage and Economic Ratios

• Operating Leverage: Variation in Sales / EBIT
• Financial Leverage: EBT / EBIT
• Gross Profit Margin: (Sales - Cost of Sales) / Sales
• Commercial Margin (CM): EBIT / Sales
• Assets Turnover: Total Assets / Avg Assets
• ROA: EBIT / Avg Assets
• ROE: (Profit / Loss) / Avg Equity

Stock Market Metrics

• Earnings Per Share (EPS): Profit / Number of Shares
• Price-to-Earnings Ratio (PER): Price / EPS
• Dividend Yield: d1 / P1
• Payout Ratio: Dividends per Share / EPS
• Book-to-Market: Accounting Equity / Market Capitalization