Financial Ratios

Spredgar^® Software products are stock market investment software that provide financial analysis and portfolio management. ValuStox Pro and ValuStox Investor are Microsoft Excel add-ins based on real data, presented in an unbiased, clear format, so stock investors can make informed decisions and maintain their portfolios. ValuStox Pro analyzes company financials in detail, producing 70+ financial ratios, cash flow, and SIC comparable data and ratios.

ValuStox Pro computes a number of standard financial ratios used by financial analysts (and others) to determine the fiscal health and profitability of a given company. These financial ratios are the ones used by Wall Street analysts to assess the earnings quality and prospects of the companies they cover. They include such basic measures as gross margin, return on equity (ROE), and the current ratio (all defined in ValuStox Pro's "ratios" section). The most common financial ratios are also calculated and graphed, all in a matter of seconds.

If you want a quick look at a company's financial health, you can generate the ratios quickly and easily using ValuStox Pro. Of course, none of these ratios by themselves indicate that a company is either a good or a poor investment. Year to year comparison of a company's ratios, along with comparisons to companies in the same industry, are required to get a complete picture. ValuStox Pro gives you both Standard Industrial Classification (SIC) line-item benchmark data, as well as comparable ratios.

List of ValuStox Pro's financial ratios

Price ratios
         P/E ratio
         E/P (yield) ratio
         Price / Book value per share
         Price / Sales per share
         Price / Free cash flow leveraged per share
         Price / FCF unleveraged per share

Profitability ratios
         Gross margin
         Operating margin
         Pretax margin
         After-tax profit margin
         Pretax return on equity (ROE)
         After-tax return on equity ROE
         Return on invested capital before tax
         Return on invested capital after tax
         Return on assets (ROA) before interest and tax
         Return on assets (ROA) after tax
         Return on working capital

Liquidity ratios         
         Current ratio
         Quick ratio
         Cash ratio
         Inventory turnover
         Cash to total assets
         Current assets to total assets
         Quick assets to total assets
         Inventory to working capital
         Inventory to current assets
         Working capital turnover

Debt ratios      
         Times interest earned
         Total debt to total assets
         Debt to equity
         Debt to total invested capital
         Common equity to total invested capital
         Total equity to total assets
         Funded debt to working capital

Disaggregation of ROE    
         Income tax burden
         Interest burden
         Profitability ratio
         Activity ratio
         Solvency ratio
        
Other ratios     
         Asset turnover
         Retained earnings to net income
         Sales to net worth
         Fixed asset turnover
         Altman's Z-Score (bankruptcy indicator)      

Free cash flow   
         Operating cash flow
         Free cash flow leveraged
         Free cash flow unleveraged
         Cash flow from operations ratio
         Capital expenditure ratio
         Operating cash flow to long-term debt

Computed values  
         Operating income
         Owner's equity / Net worth / Book value
         Working capital
         Cash and equivalents
         Quick assets
         Total invested capital
         Net fixed assets
         Net receivables
         Average sales per day
         Average cost of goods sold per day
         Days' sales in inventory
         Days' sales in receivables
         Net sales to inventory
         Net sales (sales to use in computations)
         Sales per share
         Other current assets
         Long-term assets
         Long-term debt
         Other long-term liabilities
         Primary shares

Spredgar Software's mission is to provide unbiased financial investment data for the private investor, the professional analyst, and the academic. Gordon Gerwig, founder of Spredgar Software, has a B.S. in Electrical Engineering and Computer Science from the University of California at Berkeley and an M.B.A. in Finance from the University of California at Davis. Gordon Gerwig and Spredgar Software have been written up in Online Investing for Dummies, Online Investing Hacks, and in the Innovator, the U.C. Davis Graduate School of Management's alumni magazine. Gordon is an individual investor and a member of the American Association of Individual Investors (AAII). He is a CERTIFIED FINANCIAL PLANNER, a Licensed International Financial Analyst (LIFA) , and is an associate member of the CFA Institute. He has worked in financial services as a advisor for Morgan Stanley and American Express. He has experience in small business lending, valuation and consulting.