The following financial ratios are provided within the Financial Snapshot report in the Validis portal. The table describes the calculations used to determined these ratios.
| Ratio |
Calculation |
| Operating Ratios: |
|
| - Gross Profit Margin |
Gross Profit divided by Revenue |
| - Gross Profit Markup |
Gross Profit divided by Cost of Revenue |
| - Net Profit Margin |
Net profit divided by Sales |
| Performance Ratios: |
|
| - Return on Total Assets |
Annualized Net Profit divided by Average Total assets |
| - Return on Capital Employed |
Annualized Net Profit divided by Average Shareholders’ equity |
| Activity Ratios: |
|
| - Inventory Days |
[Average Inventory divided by Annualized Cost of Revenue] x 365 |
| - Days Sales Outstanding |
[Average Accounts receivables divided by Annualized sales] div. 365 |
| - Days Payable Outstanding |
| [Average Accounts payables divided by Annualized purchases] div. 365 |
|
| Liquidity Ratios |
|
| - Current Ratio |
| Current assets divided by Current liabilities |
|
| - Quick Ratio |
| [Cash + Accounts Receivable + Short-term Investments] divided by Current Liabilities |
|
| Debt Ratios |
|
| Debt to Equity |
Long-term liabilities divided by Tangible Net Worth
(Note: Tangible Net Worth = Shareholders Equity less Intangible Assets)
|
| Interest Cover |
Operating profit divided by Interest Expense |