# Fundamentals — ratio formulas

Generated from `hfmarketdata/api/fundamentals/ratios.py` (`render_docs()`); do not edit by hand.

Conventions: flows are trailing twelve months (sum of the last four discrete quarters — or the fiscal year with `period=annual`), balances are the latest balance sheet, `price` is the last close known at the valuation date. A ratio is `null` (with a reason in `meta.reasons`) whenever an input is missing or the denominator is not positive — nothing is ever invented.

## Valuation

### `market_cap`

`market_cap = price × shares_outstanding`

`shares_outstanding` is the cover-page share count (dei:EntityCommonStockSharesOutstanding, all
classes summed) of the latest filing known at the valuation date; falls back to weighted-average
diluted shares (flagged `shares_source=weighted_diluted`).

Inputs: `price`, `shares_outstanding`

### `enterprise_value`

`enterprise_value = market_cap + total_debt − cash_and_equivalents − short_term_investments`

Missing `short_term_investments` is treated as 0 (flagged); missing `total_debt` is treated as 0 only
when the balance sheet has no debt account at all (flagged `total_debt_assumed_zero`).

Inputs: `market_cap`, `total_debt`, `cash_and_equivalents`, `short_term_investments`

### `pe`

`pe = price / eps_diluted (TTM)`

Null when TTM diluted EPS ≤ 0 (a negative P/E is not meaningful).

Inputs: `price`, `eps_diluted`

### `forward_pe`

`forward_pe = price / forward_eps`

HF Market Data does not carry analyst consensus estimates, so `forward_eps` is never available
and `forward_pe` is **always null** with reason `no_estimates` — we do not extrapolate.

Inputs: `forward_eps`

### `pb`

`pb = market_cap / total_equity`

Null when book equity ≤ 0.

Inputs: `market_cap`, `total_equity`

### `ps`

`ps = market_cap / revenue (TTM)`

Inputs: `market_cap`, `revenue`

### `ev_ebitda`

`ev_ebitda = enterprise_value / ebitda (TTM)`

Null when EBITDA ≤ 0.

Inputs: `enterprise_value`, `ebitda`

### `ev_sales`

`ev_sales = enterprise_value / revenue (TTM)`

Inputs: `enterprise_value`, `revenue`

### `ev_fcf`

`ev_fcf = enterprise_value / free_cash_flow (TTM)`

Null when FCF ≤ 0.

Inputs: `enterprise_value`, `free_cash_flow`

### `earnings_yield`

`earnings_yield = net_income (TTM) / market_cap`

Inputs: `net_income`, `market_cap`

### `fcf_yield`

`fcf_yield = free_cash_flow (TTM) / market_cap`

Inputs: `free_cash_flow`, `market_cap`

### `dividend_yield`

`dividend_yield = dividends paid (TTM, cash flow statement) / market_cap`

Inputs: `dividends`, `market_cap`

### `buyback_yield`

`buyback_yield = buybacks (TTM, cash paid for repurchases) / market_cap`

Inputs: `buybacks`, `market_cap`

## Profitability

### `gross_margin`

`gross_margin = gross_profit / revenue (TTM)`

Inputs: `gross_profit`, `revenue`

### `operating_margin`

`operating_margin = operating_income / revenue (TTM)`

Inputs: `operating_income`, `revenue`

### `net_margin`

`net_margin = net_income / revenue (TTM)`

Inputs: `net_income`, `revenue`

### `ebitda_margin`

`ebitda_margin = ebitda / revenue (TTM)`

Inputs: `ebitda`, `revenue`

### `fcf_margin`

`fcf_margin = free_cash_flow / revenue (TTM)`

Inputs: `free_cash_flow`, `revenue`

### `roe`

`roe = net_income (TTM) / total_equity (latest)`

Uses the latest book equity, not the average — simpler and point-in-time consistent. Null when
equity ≤ 0.

Inputs: `net_income`, `total_equity`

### `roa`

`roa = net_income (TTM) / total_assets (latest)`

Inputs: `net_income`, `total_assets`

### `roic`

`roic = operating_income × (1 − tax_rate) / (total_debt + total_equity − cash_and_equivalents)`

`tax_rate` = income_tax / pretax_income (TTM), only accepted in [0, 1]; when the effective rate is
not computable the ratio is null (`tax_rate_unavailable`) — no statutory rate is assumed. Null when
invested capital ≤ 0.

Inputs: `operating_income`, `income_tax`, `pretax_income`, `total_debt`, `total_equity`, `cash_and_equivalents`

## Liquidity

### `current_ratio`

`current_ratio = total_current_assets / total_current_liabilities`

Inputs: `total_current_assets`, `total_current_liabilities`

### `quick_ratio`

`quick_ratio = (cash_and_equivalents + short_term_investments + receivables) / total_current_liabilities`

Missing short_term_investments or receivables are treated as 0 (flagged).

Inputs: `cash_and_equivalents`, `short_term_investments`, `receivables`, `total_current_liabilities`

### `cash_ratio`

`cash_ratio = (cash_and_equivalents + short_term_investments) / total_current_liabilities`

Inputs: `cash_and_equivalents`, `short_term_investments`, `total_current_liabilities`

## Solvency

### `debt_to_equity`

`debt_to_equity = total_debt / total_equity`

Null when equity ≤ 0.

Inputs: `total_debt`, `total_equity`

### `debt_to_assets`

`debt_to_assets = total_debt / total_assets`

Inputs: `total_debt`, `total_assets`

### `net_debt_to_ebitda`

`net_debt_to_ebitda = net_debt / ebitda (TTM)`

Null when EBITDA ≤ 0.

Inputs: `net_debt`, `ebitda`

### `interest_coverage`

`interest_coverage = operating_income / interest_expense (TTM)`

Null when interest expense is 0 or not reported.

Inputs: `operating_income`, `interest_expense`

## Efficiency

### `asset_turnover`

`asset_turnover = revenue (TTM) / total_assets (latest)`

Inputs: `revenue`, `total_assets`

### `inventory_turnover`

`inventory_turnover = cost_of_revenue (TTM) / inventory (latest)`

Inputs: `cost_of_revenue`, `inventory`

### `receivables_turnover`

`receivables_turnover = revenue (TTM) / receivables (latest)`

Inputs: `revenue`, `receivables`

### `days_sales_outstanding`

`days_sales_outstanding = 365 × receivables / revenue (TTM)`

Inputs: `receivables`, `revenue`

### `cash_conversion_cycle`

`cash_conversion_cycle = DSO + DIO − DPO`

DSO = 365 × receivables / revenue · DIO = 365 × inventory / cost_of_revenue ·
DPO = 365 × accounts_payable / cost_of_revenue (all flows TTM, balances latest).

Inputs: `receivables`, `revenue`, `inventory`, `accounts_payable`, `cost_of_revenue`

## Growth

### `revenue_growth_yoy`

`revenue_growth_yoy = revenue (TTM) / revenue (TTM one year earlier) − 1`

Inputs: `revenue`, `revenue_prev_year`

### `revenue_growth_qoq`

`revenue_growth_qoq = revenue (latest quarter) / revenue (previous quarter) − 1`

Inputs: `revenue_q`, `revenue_prev_quarter`

### `eps_growth_yoy`

`eps_growth_yoy = eps_diluted (TTM) / eps_diluted (TTM one year earlier) − 1`

Null when the base EPS ≤ 0.

Inputs: `eps_diluted`, `eps_diluted_prev_year`

### `fcf_growth_yoy`

`fcf_growth_yoy = free_cash_flow (TTM) / free_cash_flow (TTM one year earlier) − 1`

Inputs: `free_cash_flow`, `free_cash_flow_prev_year`

### `revenue_cagr_3y`

`revenue_cagr_3y = (revenue TTM / revenue TTM 3 years earlier)^(1/3) − 1`

Inputs: `revenue`, `revenue_3y`

### `revenue_cagr_5y`

`revenue_cagr_5y = (revenue TTM / revenue TTM 5 years earlier)^(1/5) − 1`

Inputs: `revenue`, `revenue_5y`

### `revenue_cagr_10y`

`revenue_cagr_10y = (revenue TTM / revenue TTM 10 years earlier)^(1/10) − 1`

Inputs: `revenue`, `revenue_10y`

### `eps_cagr_5y`

`eps_cagr_5y = (eps_diluted TTM / eps_diluted TTM 5 years earlier)^(1/5) − 1`

Inputs: `eps_diluted`, `eps_diluted_5y`

## Per Share

### `revenue_ps`

`revenue_ps = revenue (TTM) / shares_diluted (weighted average, latest quarter)`

Inputs: `revenue`, `shares_diluted`

### `book_value_ps`

`book_value_ps = total_equity / shares_outstanding`

Inputs: `total_equity`, `shares_outstanding`

### `fcf_ps`

`fcf_ps = free_cash_flow (TTM) / shares_diluted`

Inputs: `free_cash_flow`, `shares_diluted`

### `cash_ps`

`cash_ps = (cash_and_equivalents + short_term_investments) / shares_outstanding`

Inputs: `cash_and_equivalents`, `short_term_investments`, `shares_outstanding`