BAR — Quick Sheet
Financial Statement Analysis
Read time: ~5 minutes
One-minute revision
- Current ratio = CA ÷ CL; Quick ratio excludes inventory & prepaids from CA
- ROE = NI ÷ Avg equity; DuPont: ROE = margin × turnover × leverage
- Times interest earned = EBIT ÷ Interest expense
- Higher leverage magnifies ROE in good years, magnifies losses in bad years