Scribd
Upload
57 views2 pages

Return On Equity (ROE)

This document defines and lists various financial ratios used to analyze a company's liquidity, asset turnover, capital structure, and profitability. The liquidity ratios measure a company's ability to meet short-term obligations and include the current, quick, and cash ratios as well as net working capital. Turnover ratios calculate how efficiently a company uses its assets to generate sales through inventory, debtors, creditors, fixed assets, and total assets. Capital structure ratios analyze financial leverage and include the debt to equity ratio and proprietary ratio. Finally, profitability ratios measure operating performance through gross profit margin, net profit margin, return on assets, return on equity, earnings per share, dividend payout ratios and more.

Uploaded by

Syril Thomas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
57 views2 pages

Return On Equity (ROE)

This document defines and lists various financial ratios used to analyze a company's liquidity, asset turnover, capital structure, and profitability. The liquidity ratios measure a company's ability to meet short-term obligations and include the current, quick, and cash ratios as well as net working capital. Turnover ratios calculate how efficiently a company uses its assets to generate sales through inventory, debtors, creditors, fixed assets, and total assets. Capital structure ratios analyze financial leverage and include the debt to equity ratio and proprietary ratio. Finally, profitability ratios measure operating performance through gross profit margin, net profit margin, return on assets, return on equity, earnings per share, dividend payout ratios and more.

Uploaded by

Syril Thomas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 2

LIQUIDITY RATIOS

Current Ratio
= CA/CL
Quick Ratio
= (CA-Inventories)/CL
Abs Quick Ratio/ Cash Ratio
= (Cash+Marketable Securities)/CL
Net working Capital
= (CA-CL)

TURNOVER RATIOS
INVENTORY TURNOVER RATIO
= COGS/Average Inventory
STOCK VELOCITY
= 360/ITR
DEBTOR TURNOVER RATIO
= Net Cr. Sales/Av. Debtors
DEBTOR VELOCITY
= 360/DTR
CREDITOR TURNOVER RATIO
= Net Credit Purchases/Average Creditors
CREDITOR VELOCITY
= 360/CTR
FIXED ASSET TURNOVER RATIO
= Net Sales/FA
TOTAL ASSET TURNOVER RATIO
= Net Sales/TA

CAPITAL STRUCTURE RATIOS


Debt Equity Ratio
= Long term debt / Shareholders' Equity
Proprietory Ratio
= Net Worth/Total Assets
Interest Coverage Ratio = EBIT/Fixed Interest

PROFITABILITY RATIOS
Gross Profit Margin (GPM)
GPM = (Gross Profit/Net Sales)
Net Profit Margin (NPM)
NPM = PAT/Net Sales
Operating Profit Ratio (OPR)
OPR = (Optng Profit/Net Sales)
Return on Total Assets (ROTA)
ROTA = (EBIT)(1-t)/Total Assets
Return on Equity (ROE)
ROE = (PAT/Net Worth)
Earning Per Share (EPS)
EPS = PAT/No of Shares (N)
Dividend Per Share (DPS)
DPS = Div Paid/No of Shares(N)
Dividend Payout Ratio (DPO)
DPO = DPS/EPS

You might also like