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Business Tutorial: Ratios

Types of Ratios

Profitability

Gross Margin
Net Profit Margin
Operating Margin
Pretax Margin

Valuation (P=Price, E=Earnings)

P/E (excluding extraordinary items)
P/E (normalized)
P/Sales
P/Tangible book
P/ Cash flow

Per Share Data 

  • EPS (excluding extraordinary items) 
    EPS (normalized)
    Revenue per share
    Cash per share
    Cash flow per share

Financial Strength or Solvency

  • Current Ratio
    Quick Ratio
    Long-Term(LT) Debt/Equity
    Total Debt/Equity
    Payout Ratio

Management Effectiveness

  • Return on Assets
    Return on Equity
    Return on Investments

Growth

  • Earnings per share (EPS)
    Dividend Growth

Assistant Head, Information Services

Kathleen Berger's picture
Kathleen Berger
Contact:
bergerkm@bu.edu
Room 318E
Pardee Library
617-353-4312