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 + Shortterm Investments] divided by Current Liabilities 

Debt Ratios 

Debt to Equity 
Longterm liabilities divided by Tangible Net Worth
(Note: Tangible Net Worth = Shareholders Equity less Intangible Assets)

Interest Cover 
Operating profit divided by Interest Expense 
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