Ratios Definitions


Valuation Section

Price to Earnings
The latest closing price divided by the earnings per share based on the trailing twelve month earnings. Companies with negative earnings receive an NA.

Price to Revenue
This is the latest closing price divided by the latest annual Sales Per Share.

Price to Book
This is the latest closing price divided by the latest annual Book Value Per Share.

Price to Cash Flow
This is the latest closing price divided by the latest annual Cash Flow Per Share. Cash Flow is defined as Income After Taxes minus Preferred Dividends and General Partner Distributions plus Depreciation, Depletion and Amortization.

Book Value per Share
This is defined as the Common Shareholder's Equity divided by the Shares Outstanding at the end of the most recent fiscal year.


Efficiency Section

Return on Equity
This value is the Income Available to Common Stockholders for the last fiscal year divided by the Common Equity and is expressed as a percentage.

Return on Invested Capital
This value is the fiscal year end Income after taxes divided by the average total long term debt, other long term liabilities and shareholders equity, and expressed as a percentage.

Return on Assets
This value is calculated as the Income After Taxes for the most recent fiscal year divided by the Average Total Assets, expressed as a percentage. Average Total Assets is the average of the Total Assets at the beginning and the end of the year.

Asset Turnover
This value is calculated as the Total Revenues for the most recent year divided by the Average Total Assets. The Average Total Assets is the average of the Total Assets at the beginning and end of the year.

Receivable Turnover
The fiscal year revenue divided by average receivables from the past two fiscal year balance sheets. The rate at which receivables turn over indicates how soon a company will collect cash.

Inventory Turnover
This value measures how quickly the Inventory is sold. It is defined as Cost of Goods Sold for the most recent fiscal year divided by Average Inventory. Average Inventory is the average of the Inventory at the beginning and end of the year.


Liquidity Section

Current Ratio
This is the ratio of Total Current Assets for the most recent fiscal year divided by Total Current Liabilities for the same period.

Quick Ratio
Also known as the Acid Test Ratio, this ratio is defined as Cash plus Short Term Investments plus Accounts Receivable for the most recent fiscal year divided by the Total Current Liabilities for the same period.

Debt to Equity Ratio
This ratio is Total Debt for the most recent fiscal year by Total Shareholder Equity for the same period.

Leverage Ratio
The fiscal year-end Total Assets divided by Total Stockholders Equity.


Comparison to Industry Section

Price to Earnings Ratio
The Comparison to Industry is calculated by taking the Company figure and dividing by the Multex Market Guide Industry Group Index aggregate figure.

Price to Book Ratio
This is the latest closing price divided by the latest annual Book Value Per Share.


Profitability Section

Gross Profit Margin
This value measures the percent of revenue left after paying all direct production expenses. It is calculated as the fiscal year end Total Revenue minus the Cost of Goods Sold figure for the same period divided by the trailing FYE Total Revenue and multiplied by 100.

Net Profit Margin
Profit Margin from Total Operations.