Financial ratios are metrics that, in their historical form, are extremely popular indicators often asked about; the good news is that we do have some of them as the latest snapshot in our Fundamentals API feed (*MarketCapitalization* and *PERatio *under Highlights section, *PriceBookMRQ *under Valuation); and the better news is that you can calculate them using the data that we provide!

Using the data for the sample ticker AAPL (with the demo key that is provided in our financial documentation) and the date December 30th, 2020 we’ll show how it’s done.

Contents

- 1 Historical Market Capitalization
- 2 Historical Price-to-Earnings Ratio (PE Ratio)
- 3 Historical Price-to-Book Ratio (PB Ratio)
- 4 Current Ratio
- 5 Price-to-Sales Ratio (P/S)
- 6 Enterprise Value, EV to EBITDA, EV to Sales and EV To Operating Cash Flow
- 7 Earnings Yield
- 8 Debt To Assets
- 9 Interest Coverage Ratio
- 10 Payout Ratio or Dividend Payout Ratio
- 11 Return on Equity (ROE) and Return on Assets (ROA) ratios
- 12 Return on Invested Capital (ROIC)
- 13 Quick Ratio
- 14 Gross Profit Margin (GP)
- 15 Historical Dividend Yield
- 16 Price-to-Cash Flow (P/CF)
- 17 Price to Free Cash Flow (PFCF)
- 18 Free Cash Flow Yield(FCFY)
- 19 Debt-to-Equity (D/E)
- 20 Net Debt-to-EBITDA Ratio
- 21 Return On Tangible Assets (RoTE)
- 22 Sales per share
- 23 Capex Per Share
- 24 Cash Ratio
- 25 Return on Capital Employed (ROCE)
- 26 Debt Ratio
- 27 Operating Profit Margin
- 28 Berry Ratio
- 29 Assets Turnover Ratio

## Historical Market Capitalization

This one is very easy to calculate. One needs to take the amount of shares outstanding from the outstandingShares section and multiply it by the historical price of the corresponding period taken from the EOD API feed.

**Market Capitalization = Outstanding Shares × Price**

So the **market capitalization**** **of Apple, Inc. for December 30th, 2020 will be:

- Quarterly outstanding shares for 2020 Q4. Shares: 17114000000
- EOD price for 2020-12-30. adjusted_close: 133.5205

The result. 17,114,000,000 × 133.5205 = **2,285,069,837,000.00**

This works for any date.

## Historical Price-to-Earnings Ratio (PE Ratio)

This ratio is quite easy to calculate as well. One needs to divide the historical price of the stock by the corresponding historical EPS (*epsActual* taken from the Earnings section of the Fundamentals).

**P/E ratio = Market Price per Share / Earnings per Share**

- EPS for 2020 Q4. epsActual: 1.68
- EOD price for 2020-12-30: adjusted_close: 133.5205

The result. **P/E ratio** for Apple, Inc. for December 30th: 133.5205 / 1.68 = **79.4765**

## Historical Price-to-Book Ratio (PB Ratio)

For this ratio, one has to calculate the book value first. Its formula is quite simple though:

*Book Value = Total Assets – Total Liabilities*

With that knowledge, we can calculate the P/B ratio for Apple, Inc., say, for a specific day: December 30th, 2020. From the balance sheet for Q4, sample ticker fundamentals data, we need to get the total assets and total liabilities figures:

- totalAssets: 354,054,000,000.00
- totalLiab: 287,830,000,000.00

The **book value** of Apple, Inc. for 2020 Q4 will be: 354054000000.00 – 287830000000.00 = **66,224,000,000.00**.

Then we get to the formula for the ratio itself:

**P/B ratio = Market Price per Share / Book Value per Share**

Before going to the EOD API for the price, we need to know the figure to use in the denominator.

Quarterly outstanding shares for 2020 Q4. shares: 17114000000,

**Book value per share** = 66,224,000,000.00 / 17,114,000,000.00 = **3.8696**

And finally, EOD price for 2020-12-30: adjusted_close: 133.5205,

**P/B ratio**** **for Apple, Inc. for Dec 30th, 2020:** **133.5205 / 3.8696 = **34.5050**

That’s it. The process can be repeated for any given date.

## Current Ratio

The **Current Ratio** is a liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year.

The **current assets** and **current liabilities** values could be found in the output of our Fundamental API in the **Balance Sheet** section:

**Current Ratio = totalCurrentAssets / totalCurrentLiabilities**

For the example we will use numbers from the AAPL Balance Sheet 2020 Q4:

- totalCurrentAssets: 154106000000
- totalCurrentLiabilities: 132507000000

* Current Ratio* = 154106000000 / 132507000000 = 1.163

## Price-to-Sales Ratio (P/S)

**P/S ratio** is an indicator of the value that financial markets have placed on each dollar of a company’s revenues.

To calculate the ratio you have to call the End-of-Day API to get the **adjusted close price**, Fundamentals API to get **shares **in the **outstanding shares** section, and the **Total Revenue** in the **Income Statement** section:

**P/S = adjusted_close****/ (totalRevenue / shares)**

For the example we will use numbers from the AAPL Quarterly outstanding and Income Statement 2020 Q4:

- EOD price for 2020-12-30: adjusted_close: 133.5205
- totalRevenue: 111439000000
- Shares: 17114000000

**P/S = 133.5205****/ (111439000000****/ 17114000000)***= 20.505*

## Enterprise Value, EV to EBITDA, EV to Sales and EV To Operating Cash Flow

**Enterprise value (EV) **measures a company’s total value, often used as a more comprehensive alternative to equity market capitalization. To calculate **EV** you have to get the **Market Capitalisation** first (formula shown above), then access the data on **debt **and **cash **in the **Balance Sheet **section of the Fundamentals API output. The formula is following:

*EV = Market Capitaliztion + (longTermDebt + shortTermDebt) – cashAndEquivalents*

For the example we will use numbers from the AAPL Quarterly outstanding and Balance Sheet 2020 Q4:

- Market Capitalization: 2285069837000
- longTermDebt: 99281000000
- shortTermDebt: 12762000000
- cashAndEquivalents: 36010000000

*EV = 2,285,069,837,000 + (99281000000**+ 12762000000) – 36010000000*** = 2234560837000**

The **EV/EBITDA** ratio is a popular metric used as a valuation tool to compare the value of a company, debt included, to the company’s cash earnings less non-cash expenses. The **EBITDA **value you could retrieve from the **Fundamentals API**‘s **Income Statement** component.

For the example we will use numbers from the AAPL Income Statement 2020 Q4:

- EV: 2234560837000
- EBITDA: 36883000000

**EV/EBITDA = 2234560837000 / 36883000000 = 60.58**

The **EV/Sales** multiple gives investors a quantifiable metric of how to value a company based on its sales while taking into account both the company’s equity and debt. To get the Revenue number you need to access **Fundamentals API** the **Income Statement** part the formula will look like:

**EV/Sales = EV / totalRevenue**

For the example we will use numbers from the AAPL Income Statement 2020 Q4:

- EV: 2234560837000
- totalRevenue: 111439000000

*EV/Sales = 2234560837000 / 111439000000 = 20.05*

the **EV/CFO** ratio helps us in understanding how long it will take the company to acquire existing shares and pay off outstanding obligations, using its operating cash flows.

*EV/CFO = EV / totalCashFromOperatingActivities*

For the example we will use numbers from the AAPL Cash Flow 2020 Q4:

- EV: 2234560837000
- totalCashFromOperatingActivities:38763000000

*EV/CFO = 2234560837000 / 38763000000 = 57.64*

## Earnings Yield

The **Earnings Yield** refers to the earnings per share for the most recent 12-month period divided by the current market price per share. The earnings yield (the inverse of the P/E ratio):

**Earnings Yield = epsActual / adjusted_close**

Where **epsActual **is taken from the **Earnings **section of the Fundamentals Data API and **adjusted_close** from the End-of-Day API.

For the example we will use numbers from the AAPL’s Q4 data :

- EOD price for 2020-12-30: adjusted_close: 133.5205
- EPS for 2020 Q4. epsActual: 1.68

*Earnings Yield = 1.68 / 133.5205 = 0.0126*

## Debt To Assets

**Debt To Assets** is a leverage ratio that defines the amount of debt relative to assets owned by a company. It is calculated using** total assets**, **long-term** and **short-term debt** values from the **Balance Sheet** of the **Fundamental API**‘s output.

**Debt To Assets = (longTermDebt + shortTermDebt) / totalAssets**

For the example we will use numbers from the AAPL Balance Sheet 2020 Q4:

- longTermDebt: 99281000000
- shortTermDebt: 12762000000
- totalAssets: 354054000000

*Debt To Assets = (99281000000 + 12762000000) / 354054000000 = 0.32*

## Interest Coverage Ratio

The **Interest Coverage** ratio is a debt-to-profitability ratio used to determine how easily a company can pay interest on its outstanding debt. The ratio is calculated by dividing a company’s **EBIT **by the company’s **Interest Expense** during a given period, both values could be found in the **Income Statement** section of the Fundamental API.

**Interest Coverage = ebit / interestExpense**

For the example we will use numbers from the AAPL Income Statement 2020 Q4:

- ebit: 34217000000
- interestExpense: 638000000

*Interest Coverage = 34217000000 / 638000000 = 53.63*

## Payout Ratio or Dividend Payout Ratio

The **Payout Ratio** is a financial metric showing the proportion of earnings a company pays its shareholders in the form of dividends, expressed as a percentage of the company’s total earnings. To calculate the ratio you need to divide the **Dividends Paid** from the **Cash Flow** section by the **Net Income **from the **Income statement** of the Fundamental API.

**Payout Ratio = dividendsPaid / netIncome**

For the example we will use numbers from the AAPL Income Statement and Cash Flow 2020 Q4:

- dividendsPaid: 3613000000
- netIncome: 28755000000

*Payout Ratio = 3613000000 / 28755000000 = 0.126*

## Return on Equity (ROE) and Return on Assets (ROA) ratios

The **ROE** is a tool for an investor to evaluate how effectively the business generates profits. The ratio is calculated by dividing **Net Income** by **Total Equity **values could be found in the **Income Statement** and **Balance Sheet** sections of the Fundamental API respectively.

*ROE = netIncome / totalStockholderEquity*

For the example we will use numbers from the AAPL Income Statement and Balance Sheet 2020 Q4:

- netIncome: 28755000000
*totalStockholderEquity*: 66224000000

*ROE = 28755000000 / 66224000000 = 0.434*

The **ROA **can be used to determine how efficiently a company uses its assets to generate a profit. The Total Assets value could be found in the **Balance Sheet** section of the Fundamental API.

**ROA = netIncome / totalAssets**

For the example we will use numbers from the AAPL Income Statement and Balance Sheet 2020 Q4:

- netIncome: 28755000000
- totalAssets: 354054000000

*ROA = 28755000000 / 354054000000 = 0.081*

## Return on Invested Capital (ROIC)

The **ROIC** is a calculation used to assess a company’s efficiency in allocating capital to profitable investments. For the calculation, **EBIT **value could be found in the **Income Statement**, and **Total Assets **and **Total Current Assets** in the **Balance Sheet** section of the Fundamental API.

*ROIC = ebit / (totalAssets – totalCurrentAssets)*

For the example we will use numbers from the AAPL Income Statement and Balance Sheet 2020 Q4:

- ebit: 34217000000
- totalAssets: 354054000000
- totalCurrentAssets: 154106000000

**ROIC = 34217000000 / (354054000000 – 154106000000) = 0.171**

## Quick Ratio

The **Quick Ratio** is an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets. To calculate the ratio, **Short-Term Investments** could be found in the **Cashflow Section** of the Fundamental API; the **Cash and Cash Equivalents**, **Receivables, **and **Current Liabilities** – could be accessed by looking in the **Balance Sheet** section of the Fundamental API.

**Quick Ratio = (cashAndEquivalents + shortTermInvestments + netReceivables) / totalCurrentLiabilities**

For the example we will use numbers from the AAPL Income Statement and Balance Sheet 2020 Q4:

- cashAndEquivalents: 36010000000
- shortTermInvestments: 40816000000
- netReceivables: 58620000000
- totalCurrentLiabilities: 132507000000

*Quick Ratio = (36010000000 + 40816000000 + 58620000000) / 132507000000 = 1.02*

## Gross Profit Margin (GP)

This popular metric could be calculated by using **Gross Profit** and **Total Revenue** values from the **Income Statement** section of the Fundamental API.

*Gross Profit Margin = grossProfit / totalRevenue*

For the example we will use numbers from the AAPL Income Statement 2020 Q4:

- grossProfit: 44328000000
- totalRevenue: 111439000000

*Gross Profit Margin = 44328000000 / 111439000000 = 0.398*

## Historical Dividend Yield

Historical Dividend Yield is a financial ratio (dividend/price) that shows how much a company pays out in dividends each year relative to its stock price.

*Dividend Yield = (dividendsPaid / shares) / close*

For the example we will calculate the quarterly dividend yield for AAPL by using numbers from the AAPL Cash Flow Statement 2020 Q4, EOD price for 2020-12-30, and shares outstanding from the Fundamental API:

- dividendsPaid: 3613000000
- Shares: 17114000000
- adjusted_close: 133.5205

*Dividend Yield = (3613000000 / 17114000000) / 133.5205 = 0.0015*

## Price-to-Cash Flow (P/CF)

The **P/CF** ratio is a stock valuation indicator or multiple that measures the value of a stock’s price relative to its operating cash flow per share.

*P/CF = adjusted_close**/ (totalCashFromOperatingActivities / shares)*

For the example we will calculate the **P/CF** ratio for AAPL by using numbers from the AAPL Cash Flow Statement 2020 Q4, EOD price for 2020-12-30, and shares outstanding from the Fundamental API:

- adjusted_close: 133.5205
- totalCashFromOperatingActivities:38763000000
- Shares: 17114000000

*P/CF = 133.5205 / (38763000000 / 17114000000) = 59.01*

## Price to Free Cash Flow (PFCF)

The **PFCF **metric is very similar to the valuation metric of price to cash flow but is considered a more exact measure because it uses free cash flow, which subtracts capital expenditures (CAPEX) from a company’s total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.

*PFCF = (adjusted_close*** shares) / freeCashFlow*

For the example we will calculate the ** PFCF ** ratio for AAPL by using numbers from the AAPL Cash Flow Statement 2020 Q4, EOD price for 2020-12-30, and

**shares outstanding**from the Fundamental API:

- adjusted_close: 133.5205
- freeCashFlow: 35263000000
- Shares: 17114000000

*PFCF = (133.5205 * 17114000000) / 35263000000 = 64.80*

## Free Cash Flow Yield(FCFY)

Free cash flow yield is a financial solvency ratio that compares the free cash flow per share a company is expected to earn against its market value per share.

**FCFY = freeCashFlow / (adjusted_close***** shares)**

For the example we will calculate the ** PFCF ** ratio for AAPL by using numbers from the AAPL Cash Flow Statement 2020 Q4, EOD price for 2020-12-30, and

**shares outstanding**from the Fundamental API:

- adjusted_close: 133.5205
- freeCashFlow: 35263000000
- Shares: 17114000000

*FCFY = 35263000000 / (133.5205 * 17114000000) = 0.015*

## Debt-to-Equity (D/E)

The **D/E** ratio is used to evaluate a company’s financial leverage

*D/E = (longTermDebt + shortTermDebt) / totalStockholderEquity*

For the example we will use numbers from the AAPL Balance Sheet 2020 Q4:

- longTermDebt: 99281000000
- shortTermDebt: 12762000000
- totalStockholderEquity: 66224000000

*D/E = ( 99281000000 + 12762000000) / 66224000000 = 1.69*

## Net Debt-to-EBITDA Ratio

The **net debt-to-EBITDA** ratio is a debt ratio that shows how many years it would take for a company to pay back its debt if net debt and **EBITDA **are held constant. However, if a company has more cash than debt, the ratio can be negative.

*Net debt-to-EBITDA = netDebt / ebitda*

## Return On Tangible Assets (RoTE)

The RoTE ratio helps us assess a company’s performance and is frequently used when analyzing banks and insurance companies.

*RoTE = netIncome / (totalAssets – intangibleAssets)*

**Sales per share** is a ratio that computes the total revenue earned per share over a designated period.

*Sales per share = totalRevenue/shares*

Capex Per Share is the amount of Capital Expenditure Per Share.

*Capex Per Share = capitalExpenditures/shares*

## Cash Ratio

The **Cash Ratio** evaluates the company’s ability to repay its short-term debt with cash or near-cash resources, such as easily marketable securities. This information is useful to creditors when they decide how much money, if any, they would be willing to loan a company.

*Cash Ratio = cashAndEquivalents / totalCurrentLiabilities*

## Return on Capital Employed (ROCE)

The **ROCE **ratio can help to understand how well a company is generating profits from its capital as it is put to use. **ROCE **is one of several profitability ratios financial managers, stakeholders, and potential investors may use when analyzing a company for investment.

*ROCE = ebit/(totalAssets-totalCurrentLiabilities)*

## Debt Ratio

The **Debt Ratio** can be interpreted as the proportion of a company’s assets that are financed by debt.

*Debt Ratio = totalLiab/totalAssets*

## Operating Profit Margin

The **operating profit margin** measures how much profit a company makes on a dollar of sales after paying for variable costs of production. Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

*Operating Profit Margin = operatingIncome / totalRevenue*

For the example we will use numbers from the AAPL Income Statement 2020 Q4:

- totalRevenue: 111439000000
- operatingIncome: 33534000000

*Operating Profit Margin = 33534000000 / 111439000000 = 0.3*

## Berry Ratio

The **Berry Ratio** is used as an indicator of a company’s profit in a given period. A ratio coefficient of 1 or more indicates that the company is making a profit above all variable expenses, whereas a coefficient below 1 indicates that the firm is losing money.

*Berry Ratio = (grossProfit – totalOperatingExpenses) / totalOperatingExpenses*

For the example we will use numbers from the AAPL Income Statement 2020 Q4:

- grossProfit: 44328000000
- totalOperatingExpenses: 10794000000

*Berry Ratio = (44328000000 – 10794000000) / 10794000000 = 3.11*

## Assets Turnover Ratio

The **Asset Turnover Ratio** measures the efficiency of a company’s assets in generating revenue or sales.

- totalRevenue: 111439000000
- totalAssets: 354054000000

*Assets Turnover Ratio = totalRevenue / totalAssets = 111439000000 / 354054000000 = 0.31*