These Financial Ratios should be calculated using the data from the most recent balance sheet available.  (In general, you would not use averages.)

Ratio	Desired Value	Formula	Value
Current Ratio	>2	Current Assets ------------------------ Current Liabilities
Quick Ratio	>1	Cash + Accts Receivable ------------------------ Current Liabilities
Debt:Equity Ratio	<50%	Long-Term Debt ------------------------ Equity
Debt:Capital Ratio	<33%	Long-Term Debt ------------------------ Long-Term Debt + Equity
Leverage	1.5 - 2.0	Total Assets ------------------------ Equity

    For these Turnover Ratios, use the most recent income statment data, and the average balance sheet item over the time period represented by that income statement.  For example, use the average of two balance sheets, one year apart, and the income statement that corresponds to that year of operations.  Alternatively, you could use two balance sheets, one quarter apart, and a quarterly income statement.

Ratio		Formula	Value
Inventory Turnover		Cost of Goods Sold ------------------------ Avg. Inventory
Asset Turnover		Sales or Revenues ------------------------ Avg. Total Assets
Plant Turnover		Sales or Revenues ------------------------ Avg. Plant, Prop. & Equip.
Collection Period		Avg. Accts. Receivable X 365 ------------------------ Sales or Revenues

The key to interpreting these ratios is to watch the trend over time for the same company, as well as to compare them to the most succesful competitors in the same industry.