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The Investment Constant Basic Financial Metrics & Ratios

by James J Puplava CFP, President & CEO, PFS Group. April 8, 2005

Basic Financial Metrics and Ratios - All About Dividend Investing by Don Schreiber & Gary E. Stroik

BASIC FINANCIAL METRICS	FORMULA	FINANCIAL STATEMENTS/SOURCE
Sales per share	Sales Shares outstanding	Income statement; Balance sheet
Earnings per share	Earnings Shares outstanding	Income statement; Balance sheet
Dividends per share	Dividends Shares outstanding	Retained earnings; Balance sheet
Cash flow per share	Net Income + Depreciation Shares	Income statement; Balance sheet
Yield	Dividend per share Price per share	Dividend per share; Newspaper
RATIOS	FORMULA	FINANCIAL STATEMENTS/SOURCE
Liquidity Ratio Quick ratio	Current assets - Inventory Current liabilities	Balance Sheet
Debt Coverage Ratio Short-term debt coverage ratio	Operating income Short-term debt (current liab.)	Income statement; Balance sheet
Valuation Ratios
Price-to-sales ratio	Stock price Sales per share	Newspaper; Sales per share
Price-to-earnings ratio	Stock price Earnings per share	Newspaper; Earnings per share
Dividend Ratios
Payout ratio	Dividend per share Earnings per share	Basic metric formulas
Dividend coverage ratio	Cash flow per share Dividend per share	Basic metric formulas
Growth Ratios
Revenue growth rate ratio	Year over year percent change in revenues	Income statement
Earnings growth rate ratio	Year over year percent change in earnings	Income statement
Source: "All About Dividend Investing" by Don Schreiber & Gary E. Stroik

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