30
Profit Margin =
=
3
Solvabilitas Ratio
a. Debt ratio
Debt ratio indicates how much debt is used to finance a firm’s
assets.
Debt ratio =
b. Times interest earned
Times interest earned indicates a firm’s ability to cover its interest
expense, as measured by its earnings before interest and taxes
relative to the interest expense.
Times interest earned =
4. Activity Ratio
a. Total Asset Turnover
Total Asset Turnover indicates management’s effectiveness at
managing a firm’s balance sheet
Total asset turnover =
b. Accounts receivable turnover ratio
Accounts receivable turnover ratio indicates how rapidly the
firm is collecting its credit, as measured by the number of times
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