Bank of America
Profitability ratio
Gross profit margin% = (Sales – Cost of goods sold) / Sales
Net profit margin % = Net Income / Sales
Liquidity ratio
Current ratio= Current asssets/ Current liabilities
Inventory turnover: Cost of goods sold ÷ inventory balance
Leverage ratio
Debt to Equity Ratio: (Total Debt ÷ Total Equity)
Debt to Total Capitalization: (Debt ÷ (Debt + Equity
Asset efficiency
Total asset turnover = Sales / Total assets
Fixed asset turnover = Sales / Fixed assets
Operating returns
Return on Equity: Net Income ÷ Equity
Return on Assets: Net Income ÷ Total Assets
Market ratio
Price-to-Earnings (P/E) ratio: (Price of one share ÷ Earnings of one share
Dividend Yield ratio: (Dividends per share ÷ Stock price per share
The DuPont system
ROE = Net Income X Sales X Assets
Sales Assets Equity