Accounting Ratios

Quick ratio=

• current assets - current liabilities
• current assets ÷ quick liabilities
• quick assets ÷ current liabilities

Price earning ratio also known as P/E ratio

• earnings per share - market price per share
• market price per share ÷ earnings per share
• market price per share - dividends per share

Current ratio =

• Current assets - current liabilities
• current assets ÷ current liabilities
• quick assets ÷ quick liabilities

Working capital =

• current assets - current liabilities
• current assets ÷ current liabilities
• quick assets ÷ current liabilities

Dividend yield = 

• dividends per share ÷ market price per share
• dividends - earnings per share
• dividends per share - market price per share

Earnings per share or EPS=

• net income after tax - number of shares outstanding
• net income after tax ÷ number of shares outstanding
• net income after tax - market price per share

Liquidity ratios measure

• the ability of a business to meet its financial obligations
• the view or opinion of the financial markets about the company

Market ratios 

• measure the ability of the company to meet its daily financial needs.
• measure a company's financial performance in relative to the market value of the stock