Scribd
Upload
11 views1 page

Ratios Sheet

The document outlines various financial ratios used to assess liquidity, profitability, efficiency, solvency, and valuation of a company. Key ratios include Current Ratio, Gross Profit Ratio, Return on Equity, Debt-Equity Ratio, and Price-Earnings Ratio, among others. Each ratio is defined with its formula for calculation, providing essential metrics for financial analysis.

Uploaded by

hemanthkumar.j.1999
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
11 views1 page

Ratios Sheet

The document outlines various financial ratios used to assess liquidity, profitability, efficiency, solvency, and valuation of a company. Key ratios include Current Ratio, Gross Profit Ratio, Return on Equity, Debt-Equity Ratio, and Price-Earnings Ratio, among others. Each ratio is defined with its formula for calculation, providing essential metrics for financial analysis.

Uploaded by

hemanthkumar.j.1999
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
You are on page 1/ 1

Liquidity Ratio

1. Current Ratio= Current Assets/Current Liabilities


2. Liquid Ratio/Quick Ratio/Acid Test Ratio= Liquid Assets/Current Liabilities
3. Absolute Cash Ratio= Absolute Cash/Current Liabilities
Profitability Ratios
1. Gross Profit Ratio (Gross Profit/Net Sales)*100
2. Net Profit Ratio (Net Profit/Net Sales)*100
3. Operating Profit Ratio (OPERATING PROFIT/NET SALES )*100
4. Return on Equity (Net Profit after Taxes-Preference Dividend /Equity Shareholders Funds)*100
5. Return on Capital Employed (Earnings before interest and Taxes/Capital Employed)*100
6. Earning Per Share Net Profit after interest and Tax-Pref Dividend/Number of Equity Shares
Turnover Ratio/Efficiency Ratios
1. Debtors Turnover Ratio Net Credit Sales/Average Debtors
2. Average Collection Period* 365/Debtors Turnover Ratio
3. Creditors Turnover Ratio Net Credit Purchases/Average Payables
4. Average Payment period* 365/Creditors Turnover Ratio
5. Inventory Turnover Ratio= COGS/Average Inventory ay Cost
6. Working Capital Turnover Ratio COGS/Net Working Capital
7. Fixed Asset Turnover Ratio Revenue from operations/Net Fixed Assets
* These formulas can be calculated in weeks(54 weeks or 12 months also)
Cost of Good Sold= Opening Stock+ Net Purchases+Direct Expenses-Closing Stock
Gross Profit= Sales- COGS
Net Working Capital= Current Assets-Current Liabilities
Earnings before interest and Taxes or operating profit Net Profit after tax +Interest+Taxes
Solvency Ratios
Debt-Equity Ratio Debt/Equity
Proprietory Ratio Equity Shareholders Funds/Total Assets
Interest Coverage Ratio Earnings before interest and Taxes/Interest Paid
VALUATION RATIOS
PE RATIO MPS/EPS MPS=MARKET PRICE PER SHARE EPS = EARNINGS PER SHARE
PB RATIO Market price per share / Book value per share
BOOK VALUE PER SHARE "=EQUITY SHAREHOLDERS FUNDS/NO OF EQUITY SHARES

You might also like