FinCalc / ratios + models catalog

I.

Liquidity Ratios

ability to meet short-term obligations 5 entries

·Current RatioCurrent Assets / Current Liabilities. Above 1.5 is healthy. Live in FinCalc.

·Quick Ratio (Acid-Test)(Current Assets - Inventory) / Current Liabilities. Stricter liquidity test. Live in FinCalc.

·Cash RatioCash & Equivalents / Current Liabilities. Most conservative liquidity measure. Live in FinCalc.

·Operating Cash Flow RatioCFO / Current Liabilities. Cash-based liquidity. Live in FinCalc.

·Net Working Capital Ratio(Current Assets - Current Liabilities) / Total Assets.

II.

Profitability Ratios

profit generation relative to revenue, assets, or equity 12 entries

·Gross Profit MarginGross Profit / Revenue. Above 40% is strong in most sectors. Live in FinCalc.

·Operating Profit Margin (EBIT Margin)EBIT / Revenue. Measures operating efficiency. Live in FinCalc.

·Net Profit MarginNet Income / Revenue. Bottom-line profitability. Live in FinCalc.

·Return on Assets (ROA)Net Income / Total Assets. Above 10% is strong. Live in FinCalc.

·Return on Equity (ROE)Net Income / Shareholders' Equity. Above 15% is strong. Live in FinCalc.

·Return on Invested Capital (ROIC)NOPAT / Invested Capital. Best measure of capital efficiency.

·Return on Capital Employed (ROCE)EBIT / (Total Assets - Current Liabilities). Live in FinCalc.

·EBITDA MarginEBITDA / Revenue. Cash earnings before non-cash charges. Live in FinCalc.

·NOPAT MarginNet Operating Profit After Tax / Revenue.

·Return on Net Assets (RONA)Net Income / (Fixed Assets + Net Working Capital).

·Earnings Per Share (EPS)Net Income / Shares Outstanding. Live in FinCalc.

·Diluted EPSNet Income / (Shares + Dilutive Securities). More conservative than basic EPS.

III.

Leverage / Solvency Ratios

long-term financial stability and debt levels 9 entries

·Debt-to-Equity Ratio (D/E)Total Liabilities / Shareholders' Equity. Above 2x warrants scrutiny. Live in FinCalc.

·Debt-to-Assets RatioTotal Debt / Total Assets. Above 0.5x signals moderate leverage. Live in FinCalc.

·Equity MultiplierTotal Assets / Shareholders' Equity. Component of DuPont analysis.

·Interest Coverage RatioEBIT / Interest Expense. Below 1.5x is a red flag. Live in FinCalc.

·Debt Service Coverage (DSCR)Net Operating Income / Total Debt Service. Critical for lenders.

·Fixed Charge Coverage RatioEBIT / Fixed Charges. Broader than interest coverage.

·Capitalization RatioLong-Term Debt / (Long-Term Debt + Equity).

·Long-Term Debt to CapitalizationLT Debt / (LT Debt + Equity). Proportion of permanent capital from debt.

·Net Debt / EBITDA(Total Debt - Cash) / EBITDA. Above 4x is high leverage. Live in FinCalc.

IV.

Efficiency / Activity Ratios

how effectively a company uses its assets 10 entries

·Asset Turnover RatioRevenue / Total Assets. Higher = more efficient use of assets. Live in FinCalc.

·Inventory Turnover RatioCOGS / Average Inventory. Higher = faster inventory movement. Live in FinCalc.

·Days Inventory Outstanding (DIO)365 / Inventory Turnover. Days to sell inventory.

·Receivables Turnover RatioRevenue / Average Accounts Receivable.

·Days Sales Outstanding (DSO)365 / Receivables Turnover. Days to collect payment. Live in FinCalc.

·Payables Turnover RatioCOGS / Average Accounts Payable.

·Days Payable Outstanding (DPO)365 / Payables Turnover. Days to pay suppliers. Live in FinCalc.

·Cash Conversion Cycle (CCC)DIO + DSO - DPO. Total cash cycle duration. Lower is better.

·Fixed Asset TurnoverRevenue / Net Fixed Assets. Efficiency of PP&E use.

·Working Capital TurnoverRevenue / Working Capital.

V.

Valuation / Market Ratios

assessing market value of a company 15 entries

·Price-to-Earnings (P/E)Share Price / EPS. Compare vs sector average. Live in FinCalc.

·Forward P/E RatioShare Price / Projected EPS. Forward-looking valuation.

·PEG RatioP/E / EPS Growth Rate. Below 1.0 may indicate undervaluation.

·Price-to-Book (P/B)Share Price / Book Value Per Share. Live in FinCalc.

·Price-to-Sales (P/S)Market Cap / Revenue. Useful for unprofitable companies.

·Price-to-Cash Flow (P/CF)Share Price / Operating Cash Flow Per Share.

·Price-to-Free Cash Flow (P/FCF)Share Price / FCF Per Share. Purer than P/E.

·EV/EBITDAEnterprise Value / EBITDA. Capital-structure neutral valuation.

·EV/EBITEnterprise Value / EBIT. More conservative than EV/EBITDA.

·EV/RevenueEnterprise Value / Revenue. Used for high-growth or pre-profit firms.

·EV/FCFEnterprise Value / Free Cash Flow.

·Dividend YieldAnnual Dividend / Share Price. Income return to shareholders.

·Dividend Payout RatioDividends / Net Income. Above 70% may be unsustainable. Live in FinCalc.

·Tobin's Q RatioMarket Value / Replacement Cost of Assets. Q > 1 = overvalued.

·Enterprise Value to Invested Capital (EV/IC)EV / Invested Capital. Compares market value to capital deployed.

VI.

Cash Flow Ratios

cash generation and usage quality 7 entries

·Operating Cash Flow RatioCFO / Current Liabilities.

·Free Cash Flow YieldFCF Per Share / Share Price. Higher = better value.

·FCF MarginFree Cash Flow / Revenue. Live in FinCalc.

·Cash Flow to Debt RatioCFO / Total Debt. Live in FinCalc.

·Cash Return on AssetsCFO / Total Assets.

·CapEx to Revenue RatioCapital Expenditures / Revenue. Live in FinCalc.

·CapEx to DepreciationCapEx / Depreciation. >1x = investing in growth. Live in FinCalc.

VII.

Banking & Financial Institution Ratios

specific to banks and financial firms 10 entries

·Net Interest Margin (NIM)(Interest Income - Interest Expense) / Earning Assets. Core bank profitability.

·Loan-to-Deposit RatioTotal Loans / Total Deposits. Above 80-90% signals funding pressure.

·Capital Adequacy Ratio (CAR)Tier 1 + Tier 2 Capital / Risk-Weighted Assets. Min 8% under Basel III.

·Non-Performing Loan (NPL) RatioNPLs / Total Loans. Lower is better. Above 5% is concerning.

·Return on Assets (Bank)Net Income / Total Assets. Banks typically target 1-2%.

·Efficiency Ratio (Cost-to-Income)Operating Expenses / Net Revenue. Below 50% is excellent.

·Liquidity Coverage Ratio (LCR)High-Quality Liquid Assets / Net Cash Outflows. Must be ≥100% (Basel III).

·Net Stable Funding Ratio (NSFR)Available Stable Funding / Required Stable Funding. Must be ≥100%.

·Leverage Ratio (Basel III)Tier 1 Capital / Total Exposure. Minimum 3% required.

·Provision Coverage RatioProvisions / NPLs. Higher = better cushion against bad loans.

VIII.

Investment & Portfolio Ratios

portfolio management and investment analysis 12 entries

·Sharpe Ratio(Return - Risk-Free Rate) / Std Dev. Risk-adjusted return. Above 1.0 is good.

·Sortino RatioLike Sharpe but only penalises downside volatility.

·Treynor Ratio(Return - Risk-Free Rate) / Beta. Return per unit of market risk.

·Jensen's AlphaPortfolio Return - CAPM Expected Return. Excess return vs benchmark.

·Information RatioActive Return / Tracking Error. Manager skill measure.

·Calmar RatioAnnualised Return / Maximum Drawdown.

·BetaCovariance(asset, market) / Variance(market). Systematic risk measure.

·R-Squared% of fund movement explained by benchmark. 100 = perfectly correlated.

·Maximum DrawdownPeak-to-trough decline. Worst-case loss from a historical high.

·Value at Risk (VaR)Maximum expected loss at a given confidence level (e.g. 95%) over a period.

·Conditional VaR (CVaR)Expected loss beyond the VaR threshold. Also called Expected Shortfall.

·Omega RatioProbability-weighted gains / probability-weighted losses above threshold.

IX.

Valuation Models

frameworks for determining intrinsic value 14 entries

·Discounted Cash Flow (DCF)Present value of projected future free cash flows. Gold standard of intrinsic valuation.

—Free Cash Flow to Firm (FCFF)Cash flow available to all capital providers (debt + equity).

—Free Cash Flow to Equity (FCFE)Cash flow available to equity holders only.

—Dividend Discount Model (DDM)PV of future dividends. Best for mature dividend-paying companies.

—Gordon Growth ModelP = D1 / (r - g). Single-stage DDM.

—Multi-Stage DDMAllows for different growth rates across periods.

·Comparable Company Analysis (CCA)Relative valuation using peer multiples.

·Precedent Transactions AnalysisM&A deal multiples as valuation benchmarks.

·Net Asset Value (NAV)Assets - Liabilities. Common for REITs, funds, asset-heavy firms.

·Liquidation ValueValue if all assets sold and liabilities settled.

·Economic Value Added (EVA)NOPAT - (WACC x Invested Capital). True economic profit.

·LBO Model (Leveraged Buyout)Private equity acquisition financed with significant debt.

·Sum-of-the-Parts (SOTP)Value each business segment separately then sum.

·Venture Capital MethodTerminal value at exit / (1 + target IRR)^n.

·Real Options ValuationBlack-Scholes adapted for strategic flexibility and managerial options.

X.

Credit & Distress Models

creditworthiness and probability of default 8 entries

·Altman Z-Score5-factor model predicting bankruptcy. Z > 2.99 = safe zone.

·Altman Z''-Score (Emerging Markets)Modified Z-Score adapted for emerging market companies.

·Ohlson O-ScoreLogistic regression model for bankruptcy probability.

·Zmijewski ScoreProbit model for financial distress prediction.

·Merton ModelStructural credit model — equity as call option on firm assets.

·KMV Model (Moody's)Extends Merton using expected default frequency (EDF).

·Credit Scoring Models (FICO)Statistical models scoring individual / corporate creditworthiness.

·Interest Coverage Ratio (credit)EBIT / Interest Expense. Used by lenders as a credit proxy.

XI.

Risk & Pricing Models

pricing assets and quantifying risk 13 entries

·Capital Asset Pricing Model (CAPM)E(R) = Rf + Beta x (Rm - Rf). Expected return for given systematic risk.

·Arbitrage Pricing Theory (APT)Multi-factor extension of CAPM.

·Fama-French Three-Factor ModelCAPM + size (SMB) + value (HML) factors.

·Fama-French Five-Factor ModelAdds profitability (RMW) and investment (CMA) factors.

·Carhart Four-Factor ModelFama-French 3F + momentum factor (MOM).

·Black-Scholes-Merton ModelOptions pricing: C = S*N(d1) - K*e^(-rT)*N(d2).

·Binomial Options Pricing ModelDiscrete-time option pricing via probability tree.

·Monte Carlo SimulationStochastic modelling of asset price paths for valuation.

·GARCH ModelGeneralised AutoRegressive Conditional Heteroskedasticity. Volatility clustering.

·Vasicek ModelMean-reverting interest rate model.

·Cox-Ingersoll-Ross (CIR) ModelNo-negative-rate extension of Vasicek.

·Hull-White ModelExtended Vasicek with time-varying parameters. Used for derivatives pricing.

·Black-Derman-Toy (BDT) ModelBinomial interest rate tree model for bond and option pricing.

XII.

Macroeconomic & Fixed Income Ratios

yield, duration, and macro indicators 9 entries

·Yield to Maturity (YTM)Total return if bond held to maturity. Most comprehensive bond yield measure.

·Current YieldAnnual Coupon / Bond Price. Simple yield ignoring capital gain/loss.

·Yield to Call (YTC)YTM assuming bond called at earliest call date.

·Macaulay DurationWeighted average time to receive cash flows. Interest rate sensitivity measure.

·Modified Duration% price change for 1% change in yield. = Macaulay Duration / (1 + YTM/n).

·Effective DurationDuration for bonds with embedded options (callable, putable).

·ConvexityCurvature of price-yield relationship. Higher convexity = less price drop when rates rise.

·Debt-to-GDP RatioGovernment Debt / GDP. Above 90% associated with slower growth (Reinhart & Rogoff).

·Money Multiplier1 / Reserve Requirement. Maximum deposit expansion from a unit of reserves.

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