Debts Ratio & Market Ratio

Debt Ratio:-

Debt ratios measure the firm's ability to repay long-term debt. Debt ratios measure financial leverage.

• Debt ratio:-

Total Liabilities

Total Assets

• Debt to equity ratio:-

Long-term Debt + Value of Leases

Average Shareholders Equity

• Long-term Debt to equity:-

Long-term Debt

Total Assets

• Times interest-earned ratio:-

EBIT

Anual Interest Expenses

OR

Net Income

Annual Interest Rate

• Debt service coverage ratio:-

Net Operating Income

Total Debt Service

Market Ratios:-

Market ratios measure investor response to owning a company's stock and also the cost of issuing stock.

• Earnings per share (EPS):-

Expected Earnings

Numbers of Shares

• Payout ratio:-

Dividends

Earnings

OR

Dividends

EPS

• P/E ratio:-

Market Price Per Share

Diluted EPS

• Cash flow ratio:-

Market Price Per Share

Present Value of Cash Flow per Share

• Price to book value ratio (P/B or PBV):-

Market Price Per Share

Balance Sheet Price per Share

• Price/sales ratio:-

Market Price Per Share

Gross Sales

• PEG ratio:-

Price per Earnings

Annual EPS Growth