| Current Ratio | This ratio compares the current assets (such as cash, receivables, and inventories) to the current liabilities (such as payables, accrued expenses, and short-term debt). A higher current ratio indicates a better liquidity position. | Current ratio = Current assets / Current liabilities |
| Quick Ratio | This ratio is similar to the current ratio, but it excludes inventories, which are less liquid than other current assets. A higher quick ratio indicates a stronger liquidity position. | Quick ratio = Current assets - Inventories / Current liabilities |
| Cash Ratio | This ratio is the most conservative measure of liquidity, as it only considers the most liquid current asset, which is cash and cash equivalents. A higher cash ratio indicates a more liquid position. | Cash ratio = Cash and cash equivalents / Current liabilities |
| Debt-to-assets ratio | This ratio compares the total debt (both short-term and long-term) to the total assets (both current and non-current). A lower debt-to-assets ratio indicates lower leverage and a higher solvency. | Debt-to-assets ratio = Total debt / Total assets |
| Debt-to-equity ratio | This ratio compares the total debt to the total equity (the difference between assets and liabilities). A lower debt-to-equity ratio indicates a lower leverage and a higher solvency. | Debt-to-equity ratio = Total debt / Total equity |
| Debt service coverage ratio | This ratio measures the ability of a school to generate enough income to cover its debt payments, such as interest and principal. A higher debt service coverage ratio indicates a higher solvency and a lower risk of default. | Income before interest and taxes / Debt service |
| Asset turnover ratio | This ratio measures how much revenue a school generates for each unit of assets. A higher asset turnover ratio indicates higher efficiency and productivity. | Asset turnover ratio = Revenue / Average total assets |
| Receivables turnover ratio | This ratio measures how quickly a school collects its receivables, such as tuition fees, grants, and donations. A higher receivables turnover ratio indicates a faster collection and a lower risk of bad debts. | Receivables turnover ratio = Revenue / Average receivables |
| Inventory turnover ratio | This ratio measures how quickly a school sells its inventories, such as books, supplies, and equipment. A higher inventory turnover ratio indicates a faster turnover and a lower risk of obsolescence. | Inventory turnover ratio = Cost of goods sold / Average inventory |
| Gross profit margin | This ratio measures how much of the revenue is left after deducting the cost of goods sold, such as salaries, materials, and utilities. A higher gross profit margin indicates higher profitability and a lower cost structure | Gross profit margin = Gross profit / Revenue |
| Operating profit margin | This ratio measures how much of the revenue is left after deducting all the operating expenses, such as administration, depreciation, and interest. A higher operating profit margin indicates higher profitability and a lower operating cost structure. | Operating profit margin = Operating profit / Revenue /td> |
| Net profit margin | This ratio measures how much of the revenue is left after deducting all the expenses, including taxes. A higher net profit margin indicates higher profitability and a lower overall cost structure. | Net profit margin = Net profit / Revenue |
| Return on assets | This ratio measures how much profit a school earns for each unit of assets. A higher return on assets indicates higher profitability and higher asset efficiency. | Return on assets = Average total assets |
| Return on equity | This ratio measures how much profit a school earns for each unit of equity. A higher return on equity indicates higher profitability and higher equity efficiency. | Return on equity = Net profit / Average total equity |
| Revenue growth rate | Revenue growth rate = Revenue in current period - Revenue in previous period / Revenue in previous period | Debt-to-assets ratio = Total debt / Total assets |
| Profit growth rate | This ratio measures the percentage change in profit from one period to another. A higher profit growth rate indicates a higher growth potential and higher profitability. | This ratio measures the percentage change in profit from one period to another. A higher profit growth rate indicates a higher growth potential and higher profitability. |
| Asset growth rate | This ratio measures the percentage change in assets from one period to another. A higher asset growth rate indicates a higher growth potential and a higher asset efficiency | Asset growth rate = Assets in current period - Assets in previous period / Assets in previous period/td> |
| Equity growth rate: | This ratio measures the percentage change in equity from one period to another. A higher equity growth rate indicates a higher growth potential and higher equity efficiency. | Equity growth rate = Equity in current period - Equity in previous period / Equity in previous period |