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The Inventory Turnover ratio tells you the number of times inventory was sold in the period.OPERATING OR ACTIVITY RATIOSPercentage change in Sales Current Year Net Sales - Prior Year Net Sales/Prior Year Net SalesThis is simply a measure of the change in sales from one year to the next.Gross Profit PercentageNet Sales - Cost of Sales Net SalesWondering how much that sale you just made will amount to in gross profit? This ratio shows how much of every dollar of net sales becomes gross profits.Operating Expenses as a Percentage of SalesOperating Expenses Net SalesThis is a calculation to tell you how much of every net sales dollar went towards operating expenses.Bad Debt as a Percentage of SalesBad Debt Expense Net Credit Sales Ever wondered about your credit policies? This ratio will illustrate the effectiveness of the your businesses credit policies.Repairs and Maintenance as a Percentage of Net Fixed AssetsRepairs and Maintenance Expense Net Fixed Assets How much are you spending on repairs and maintenance? This ratio can help you in making decisions about equipment replacement.LIQUIDITY RATIOSCurrent RatioCurrent Assets Current LiabilitiesShows the company's ability to meet its current obligations (or pay off debt).Quick RatioCurrent Assets - Inventory Prepaid items Current Liabilities This is similar to the Current Ratio. The difference is that it does not include assets that cannot be quickly converted to cash. The higher the number, the more liquid the company. LEVERAGE RATIOSDebt RatioDebt Total AssetsThis gives an indication of the ability of the company to absorb losses without risking assets. 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