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FSA Ratios

Trdeef

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3 views3 pages

FSA Ratios

Trdeef

Uploaded by

osamaelkholy7070
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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 Liquidity ratios (B/S ratios): -

1) WC / NWC / Liquidity surplus = CA – CL = $


2) CR = C A / C L = Times
3) QR / stress ratio = Q A (Cash + T / R + ST investments) / C L = Times
4) Cash ratio = (Cash + ST investments) / C L = Times
5) Protection ratio (PR) / shrinkage ratio = W C / C A = %
6) Liquidity surplus / sales = W C / sales X 100

 Solvency ratios: -
1) Debt ratio / Assets Leverage = T L / T A = %
2) Debt to equity ratio / financial Leverage = T L / T O.E = %
3) Gearing = T Borrowing (Interest bearing liabilities) / T O.E = %
4) Potential Gearing = (T Borrowing + Undrawn Borrowing facilities) / T O.E = %
5) Operational Gearing = GP / NOP = %
6) Interest Coverage (Earning Basis) = EBIT / Interest expense paid = Times
7) Interest Coverage (Cash Flow Basis) =
Operating Cash Flow Before interest & tax & dividends / Interest paid = Times
8) Debt Service Coverage Ratio (DSCR) =

Operating Cash Flow Before interest & tax & dividends /

Total Cost of finance (Principle payments (CPLTD) + Interest + Dividends) = Times

 Profitability ratios: -
1) Net Earning Margin / Net Profit Margin / (ROS) =
(EAT OR NPAT) / Sales X 100 = %
2) Operating Earning Margin / NOP M / EBITDA M = EBITDA / Sales X 100 = %
3) Gross Profit Margin (G P M) = G P / Sales X 100 = %

Moamen Mogahed
4) Operating Cost Margin = Operating Cost EXP / Sales X 100 = %
5) Operational Gearing = G P / NOP = %
6) % of remaining Inventory = E INV (B/S) / (COGS + INV) X 100 = %
7) % of Sold Inventory = COGS / (COGS + INV) X 100 = %

 Return ratios: -
1) Return on Equity (ROE) = EBT / O.E X 100 = %
2) Return on Assets (ROA) = EBT / T A X 100 = %
3) Return on Capital Employed (ROCE) =

EBT / Capital Employed (O.E + LTD) X 100 = %

 Working Capital Management ratios: -


1. Inventory Turnover = COGS / INV = Times
2. Inventory DOH = INV / COGS X 365 = Day
3. Inventory DOH = 365 / Inventory Turnover = Day
4. R M DOH = R M / COGS X 365 = Day
5. W I P DOH = W I P / COGS X 365 = Day
6. F G DOH = F G / COGS X 365 = Day
7. Trade Payable DOH = T / P (A / P + N / P) / COGS X 365 = Day
8. Trade Receivable DOH = T / R (A / R + N / R) / Sales X 365 = Day
9. NWA Item (A/R&INV&A/P) = ( DOH X Relevant ]Sales / COGS[ ) / 365 = $
10. A / Payable = Monthly Purchases X % of Credit X No. of Months = $
11. A / Receivable = Monthly Sales X % of Credit X No. of Months = $
12. creditor strain = Payables / Sales X 100 = % (15 : 20 %)
13. ACC = INV DOH + T / R DOH = Day
14. CCC = ACC (INV DOH + T / R DOH) - T / P DOH = Day
Moamen Mogahed
15. Net Working Assets (NWA) = T / A – T / L = $
= (INV + A / R + N / R) - (A / P + N / P) = $
16. Net Working Assets to sales = NWA / sales = $
17. Net Working Assets Requirement (NWAR) =
Additional Net Working Assets (ANWA) =
EXP NWA – PER NWA = $
NWA END BAL – NWA BEG BAL = $
18. Required Finance (RF) = (NWAR OR ANWA) – RE = $
19. NWA For Projected Year 2021 =
(NWA / Sales) X Projected Sales 2021 = $
20. RE To Sales = RE / Sales X 100 = %
21. Sales to Total Assets = Sales / TA = Times

 Break Even Point ratios: -


1) Gross Margin = GM / Sales = %
2) Break Even Point (BEP) = (FC – DEP) / GMR = $
3) Margin of Safety (MOS) = (ACT Sales – BE Sales) / ACT Sales = %
4) The Company Break Even Point at = BEP / ACT Sales X 100 = %
5) BEP to Achieve a Required Profit = (FC – DEP) + Required Profit / GMR = $
6) BEP to pay INT + CPLTD = (FC – DEP) + INT + CPLTD / GMR = $
7) Operational Gearing = GP / NOP = Times

Moamen Mogahed

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