Fundamental Analysis Ratios

Fundamental Analysis
Earnings (E)
/ = Profit Margin
Sales Return on Assets (E/TotAss)
/ = Asset Turnover
Total Assets (TA) => Rtn on Equity
(E/Book)
Tot Debt
/ = Leverage
Tot Assets

Fundamental Analysis
Earnings = Net Income
Book Value = Shareholders Equity

Net Asset Value = Total Assets -
(Tot Current Liabilities + Long Term Debt)
Return on Equity = Earnings / Book
Return on Assets = Earnings / Total Assets
Profit Margin = Earnings / Sales
Operatg Margin = Operating Income / Sales
Return on Equity = Earnings / Book

Liquidity Ratios:
Current Ratio = Current Assets / Current Liabilities
Quick Ratio = (Current Assets - Inventories) /
Current Liabilities

Asset Utilization Ratios:
Inventory Turnover = Sales / Inventories
Total Asset Turnover = Sales / Total Assets

Debt Ratios
LT Debt:Equity = LT Debt / Book nl = 1:3 per Lynch
Tot Debt:Assets= LT Debt / Assets


Fundamental: Lynch
stock types:
slow growers
stalwarts
fast growers
cyclicals
asset plays

compare PE/gro rate => 1.5 bad <1 = good