[Template] The Top 15 Credit & Balance Sheet Ratios
 Share
The version of the browser you are using is no longer supported. Please upgrade to a supported browser.Dismiss

View only
 
ABCDE
1
2
Cheat Sheet: Balance Sheet Ratios
3
Ratios to evaluate credit health and management’s operating capital efficiency.
4
5
Interest Coverage RatiosCalculationHealthy
6
Ratios that specifically measure a business's ability to make interest payments.
7
8
EBIT Interest CoverageEarnings Before Interest & Taxes / Interest Expense> 3.0x
9
EBITDA Interest Coverage
Earnings Before Interest, Taxes, Depreciation & Amortization / Interest Expense
> 4.0x
10
EBITDA less CapEx Interest Coverage
(EBITDA - 2 Year Average Capital Expenditures) / Interest Expense> 3.0x
11
12
13
Leverage RatiosCalculationHealthy
14
Ratios that measure the use of debt. High leverage makes good times better and bad times worse.
15
16
Debt to Equity(Current Debt + Long Term Debt) / Common Equity< 75%
17
Debt to Tangible Equity(Current Debt + Long Term Debt) / (Common Equity - Intangible Assets)< 100%
18
Debt To Total Capital(Current Debt + Long Term Debt) / (Total Debt + Market Capitalization)< 30%
19
Cash Flow to Total DebtCash Flow from Operations / Total Debt> 10%
20
Liabilities to AssetsTotal Liabilities / Total Assets< 50%
21
22
23
Liquidity RatiosCalculationHealthy
24
Ratios that measures a business's ability to service its working capital requirements and debt.
25
26
Cash Ratio(Cash & Short Term Investments) / Current Liabilities> 0.75x
27
Quick Ratio(Cash & Short Term Investments + Receivables) / Current Liabilities> 1.0x
28
Current RatioCurrent Assets / Current Liabilities> 1.5x
29
30
31
Asset & Inventory RatiosCalculationHealthy
32
Ratios that measure efficiency of cash required to maintain inventory.
33
34
Asset TurnoverSales / Average Total Assets> 1.0x
35
Fixed Asset TurnoverSales / Average Net Property, Plant, and Equipment> 2.0x
36
Inventory TurnoverCOGS / Average Inventory> 8.0x
37
Cash Conversion Cycle
Days Sales Outstanding + Days Inventory Outstanding - Days Payable Outstanding
< 45 days
38
39
40
Supporting CalculationsCalculation
41
Days Sales Outstanding(Average Accounts Receivable / Sales) x 365< 45 days
42
Days Inventory Outstanding(Average Inventory / Cost of Sales) x 365< 45 days
43
Days Payable Outstanding(Average Accounts Payable / Cost of Sales) x 365> 45 days
44
45
46
Created by:
47
finbox.io
48
Loading...