A. Profitability

Frequency¤

Rank#

1) Return on investment ratio = ROI = (NS − TE)/TA = NS/TA − TE/TA

89

1

Components of ROI:

2) Profit margin ratio = PRM = (NS − TE)/NS = 1 − TE/NS

9

21

3) Capital turnover = CTR = NS/TA

32

7

B. Dynamic liquidity

4) Traditional cash flow to sales ratio = TCF = (NS − CE)/NS = 1 − CE/NS

9

20

C. Static liquidity

5) Current ratio = CRA = CA/CD

51

2

D. Static solidity (long-term solvency)

6) Debt to assets ratio = DAR = TD/TA

46

3

E. Dynamic solidity (long-term solvency)

7) Cash flow to debt ratio = CFD = (NS − CE)/TD = NS/TD − CE/TD

43

5