[Verse 1] When balance sheets and income statements flood your desk at night Current ratio tells the tale of short-term payment might Divide those current assets by the liabilities due If it's less than one-point-five, cash troubles may ensue [Chorus] Liquidity, solvency, profitability's key Quick and current ratios set your short-term free Debt-to-equity measures leverage in your hand ROE times ROA shows how well you understand Margin times turnover times the leverage game DuPont breaks it down, nothing stays the same [Verse 2] Quick ratio strips inventory from the current test Acid test reveals which assets truly serve you best Interest coverage ratio takes your EBIT score Divide by interest expense, see if you can pay for more [Chorus] Liquidity, solvency, profitability's key Quick and current ratios set your short-term free Debt-to-equity measures leverage in your hand ROE times ROA shows how well you understand Margin times turnover times the leverage game DuPont breaks it down, nothing stays the same [Verse 3] Receivables turnover shows collection velocity Inventory turnover reveals efficiency Asset turnover multiplied by margin yield ROA emerges from this mathematical field [Bridge] Common-size statements show percentages aligned Trend analysis tracks patterns over time Free cash flow subtracts capital expense Quality of earnings makes the difference immense [Chorus] Liquidity, solvency, profitability's key Quick and current ratios set your short-term free Debt-to-equity measures leverage in your hand ROE times ROA shows how well you understand Margin times turnover times the leverage game DuPont breaks it down, nothing stays the same [Outro] Gross margin, net margin tell profitability's story Financial statement analysis reveals corporate glory
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