chapitre14.py

Created on December 04, 2025
970 Bytes
# CH14 - KEY RATIOS
# --------------------------------
# 1) CURRENT RATIO
# = Current Assets / Current Liabilities
# Current Assets = cash, AR, inventory,
# prepaid, short-term assets
# Current Liabilities = AP, salaries pay,
# taxes pay, interest pay, unearned rev
# --------------------------------
# 2) DEBT RATIO
# = Total Liabilities / Total Assets
# Total Liabilities = debts + payables
# Total Assets = cash + AR + inv +
# equipment + building + land
# --------------------------------
# 3) PROFIT MARGIN
# = Net Income / Net Sales
# Net Income = revenues - expenses
# Net Sales = sales - returns - discounts
# --------------------------------
# 4) RETURN ON ASSETS (ROA)
# = Net Income / Average Total Assets
# Average Assets = (Beg Assets + End Assets)/2
Current Ratio =
# Current Assets / Current Liabilities
# 
Debt Ratio =
# Total Liabilities / Total Assets
#
# EPS =
# Net Income / Number of Shares
#
# Average =
# (Beginning + Ending) / 2