Intro to Financial Statements & Ratios

Financial Statement Analysis - Key Figures

interest coverage ratio = how much of your income goes to the bank

current ratio = measures current assets compared to your current liabilities

quick ratio = measures cash vs debts

cash flow ratios = how does your cash flow compare to your bank debts

Return

ROC = Operating Result (EBIT) / Total Assets (avg: 7-8%). Can also be calculated by Profit Margin * Asset Turnover
ROE = Net result / Equity (avg: 9-11%)

Risk

Solvency = Equity / Total Assets (avg: 30-40%)
Interest Coverage Ratio = Interest Expenses/Operating Result (EBIT) (avg: 20-30%)
Current Ratio = Current Assets / Current Liabilities (avg: 100-120%)
Quick Ratio = Current Assets (excl. Inventories) / Current Liabilities (avg: 80-90%)
Cash Flow Coverage = EBITDA (cash flow) / Long Term Debts (avg: 25-30%)