Yearly Turnover – Net sales of last year
Gearing or “Debt-to-equity ratio” is a measure of a company’s financial leverage and shows the extent to which its operations are funded by lenders vs. shareholders.
Calculation: (total debt) / (total equity)
The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities.
Calculation: (Net income + depreciation) / (Short-term Liabilities + Long-term Liabilities)
The net debt to EBITDA ratio is a debt ratio that shows how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant.
Calculation: (Net debt / Ebitda)
The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a company can pay interest on outstanding debt.
Calculation: (Ebit / Interest expenses)
Current ratio: (Current assets / Current Liabilities)
Quick ratio: ((Current Assets – inventories) / Current Liabilities)
Cash Ratio: (Cash and cash equivalents / current liabilities)
The Altman Z-score is the output of a credit-strength test that gauges a publicly traded manufacturing company’s likelihood of bankruptcy.
Calculation: Z-Score = (1.2A + 1.4B + 3.3C + 0.6D +1.0E)
A = (Working Capital / Total Assets)
B = (Retained Earnings / Total Assets)
C = (Ebit / Total Assets)
D = (Market Value of Equity /Total Liabilities)
E = (Sales / Total Assets)