Financial ratios in financial statements

Operating Margin, ОPM
measures how much profit a company makes on a dollar of sales after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax.
OPM = Operating income / Revenue
Net Profit Margin, NPM
ratio of net profits to revenues for a company or business segment. The net profit margin illustrates how much of each dollar in revenue collected by a company translates into profit.
NPM = Net income / Revenue
PROFITABILITY RATIOS
Debt ratio or debt-to-assets ratio
a financial ratio that measures the extent of a company’s leverage. The debt ratio is defined as the ratio of total debt to total assets, expressed as a decimal or percentage. It can be interpreted as the proportion of a company’s assets that are financed by debt.
Debt ratio or debt-to-assets ratio = Total Equity / Total Assets
Debt-to-equity ratio
an important metric used in corporate finance. It reflects the ability of shareholder equity to cover all outstanding debts in the event of a business downturn.
Debt to equity ratio = Total liabilities / Total shareholders’ equity
Interest coverage ratio
a debt ratio and profitability ratio used to determine how easily a company can pay interest on its outstanding debt.
Interest coverage ratio = EBIT / Annual Interest Expense
FINANCIAL LEVERAGE RATIOS
Cash ratio
a measurement of a company's liquidity, specifically the ratio of a company's total cash and cash equivalents to its current liabilities. This information is useful to creditors when they decide how much money, if any, they would be willing to loan a company.
Cash ratio = (Cash + cash equivalents) / Current liabilities
Quick ratio or Acid test ratio
an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets. It indicates the company’s ability to instantly use its near-cash assets
Quick ratio = (Cash & cash equivalents + marketable securities + accounts receivable) / Current liabilities
Current ratio
a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.
Current ratio = Current assets / Current liabilities