How does your company measure up?

Here are a few common ratios and other guides investors frequently employ in evaluating investments:


Price-To-Earnings Ratio
Current price divided by the sum of earnings per share over the last four quarters.
Price-To-Book Ratio
Price divided by book value per share at the end of the most recent quarter.



Gross Margin
Revenue minus the cost of goods sold divided by revenue (x100).
Operating Margin
Operating income divided by revenue (x100).
Net Margin
Net income divided by revenue (x100).



Return On Assets
Income for the trailing 12 months divided by the average total assets (x100).
Return On Investment (Invested Capital)
Net income for the trailing 12 months divided by average total long-term debt, other long-term liabilities and shareholders equity (x100).
Return On Equity
Net income for the trailing 12 months divided by average equity(x100).



Current Ratio
Total current assets divided by total current liabilities.
Quick Ratio (Acid Test Ratio)
Cash and equivalents plus accounts receivable divided by total current liabilities.
Long-Term Debt-To-Equity
Long-term debt divided by shareholder equity.
Book Value Per Share
Shareholders' equity divided by shares outstanding at end of most recent quarter.