Current Ratio *

Current Ratio *

Current Assets
= Current Ratio
Current Liabilities

*It's also good to try to maintain a current ratio greater than 1. A number greater than 1 indicates that, if you had to, you could sell some assets to pay off your debts.

Debt to Equity Ratio

Debt
= Debt to Equity Ratio
Equity

Debt Ratio

Debt
x 100 = Debt Ratio
Assets

Gross Profit Margin

Gross Profit per Unit
x 100 = Gross Profit Margin
Retail Price

Markup Percentage

Markup
x 100 = Markup Percentage
Wholesale Cost

Payback

Start Up Costs
x 12 = / Number of months it will take to recoup your investment
Net Profit Per Year

Profit Margin

Profit
x 100= Profit Margin
Sales

Quick Ratio (Analyze a business' liquidity, ability to convert its assets into cash) *

Cash + Marketable Securities
= Quick Ratio
Current Liabilities

*Quick ratio should always be greater than 1, this means that you have enough cash at your disposal to cover all your current short-term debts.

Return On Investment (ROI)

Ending Wealth - Beginning Wealth
x 100 = ROI (XX%)
Beginning Wealth

Return on Sales (ROS)

Net Profit
x 100 = / ROS
Total Sales

This figure tells investors how much profit your business is making on every dollar it brings in.

Rule of 72- How many years it takes for money to double in value? *

72
= Number of years it will takes for money to double in value
ROI

* The ROI might be equal to the interest rate, if the money is being held in a bank.

Break-Even (in Units)

Monthly Fixed Cost
= Break-Even Units
Gross Profit per Unit

C = Cost

P = Price

M# = Magic Number

P = C x M#

C = P

M#

M# = ROI + 1

ROI = P – C x 100

C

Mr. G 1 / Current Ratio * |