Statement Ratios
6 algorithms in Fundamental Analysis and Valuation · 6 with asserted arithmetic.
In this family#
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DuPont Decomposition verified
Splits return on equity into net profit margin, asset turnover and equity multiplier, using period-average assets and equity as the denominators, and reports the gap between the three-factor product and return on equity taken directly as
net_income / average_equity.dupontDecomposition(input) -
ROIC Calculation verified
Computes NOPAT as operating profit less tax at a normalized rate, then divides it by average invested capital, where invested capital at each end of the period is operating assets minus operating liabilities.
roicCalculation(input) -
Cash Conversion Cycle verified
Turns average receivables, inventory and trade payables into days sales outstanding, days inventory outstanding and days payables outstanding over a stated day count, then reports the cash conversion cycle as DIO plus DSO minus DPO.
cashConversionCycle(input) -
Interest-Coverage Ratio verified
Divides EBIT by gross interest expense on the times-interest-earned convention and reports how much of the interest bill earnings fail to cover.
interestCoverageRatio(input) -
Net-Debt/EBITDA verified
Builds EBITDA by adding interest, income tax and depreciation and amortization back to net income, nets borrowings against cash under a declared lease policy, and divides net debt by EBITDA.
netDebtToEbitda(input) -
Common-Size Statements verified
Divides every line item of each period by that period's own base line to give common-size percentages, and tracks one focus line's percentage and its change in percentage points against the previous period.
commonSizeStatements(input)
What they share#
Every topic here is a record-transform, so once you have
called one the rest follow the same shape. Import paths differ only in the final segment:
import { dupontDecomposition } from "fintech-algorithms/fundamental-analysis-and-valuation/statement-ratios/dupont-decomposition";
import { roicCalculation } from "fintech-algorithms/fundamental-analysis-and-valuation/statement-ratios/roic-calculation";Read them in the order above — the sequence is pedagogical, not alphabetical.
Where this sits#
Fundamental Analysis and Valuation collects 52 algorithms across 6 families. For the concept behind this family rather than the call signatures, see the concept guides.