- Working Capital to Total Assets
- Retained Earnings to Total Assets
- EBIT to Total Assets
- Sales to Total Assets
- Equity to Debt
- Cash Flow to Debt
Working Capital to Total Assets - records net liquid assets relative to total capitalization and is a valuable indicator of a looming business disaster. Consistent operating losses will cause current assets to shrink relative to total assets.
Net Working Capital / Total Assets = Working Capital to Total Assets Ratio
Retained Earnings to Total Assets - newer firms typically have low figures for this ratio and are illustrated by the frequency trend of businesses failing in three years.
Retained Earnings / Total Assets = Retained Earnings to Total Assets Ratio
EBIT to Total Assets - a measure of the effectiveness of the earning power of the asset values.
EBIT / Total Assets = EBIT to Total Assets Ratio
Sales to Total Assets - measure management's ability to function in competitive situations while not excluding intangible assets.
Total Sales / Total Assets = Sales to Total Assets Ratio
Equity to Debt - measures how much your business assets can decline in value before it becomes insolvent.
(Market Value of Common + Preferred Stock) / (Total Current + Long-Term Debt) = Equity to Debt Ratio
Cash Flow to Debt - known as one of the best predictors of business failure and measures the cash availability to cover debt.
Cash Flow / Total Debt = Cash Flow to Debt Ratio
Read more about ratios at:
Financial Metrics - Ratio Analysis Considerations