The Investment Constant
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