Some Important Ratios

SR NO. NAME FORMULA TOTAL CURRENT ASSETS = TOTAL CURRENT LIABILITIES = QUICK / LIQUID ASSETS TOTAL CURRENT LIABILITIES

1 CURRENT RATIO

2 QUICK RATIO

3 INVENTORY TURNOVER RATIO

COST OF GOODS SOLD = AVERAGE INVENTORY ANNUAL MATERIAL CONSUMED = AVERAGE R/M INVENTORY ANNUAL NET CREDIT SALES = AVERAGE RECEIVEBLES ANNUAL NET CREDIT PURCHASES = AVERAGE PAYABLES ANNUAL NET SALES = AVERAGE WORKING CAPITAL NET SALES = AVERAGE TANGIBLE ASSETS NET SALES = AVERAGE FIXED ASSETS NET SALES = AVERAGE CAPITAL EMPLOYED DEBT = NET WORTH
OR

4 R/M TURNOVER RATIO

5 RECEIVABLE TURNOVER RATIO

6 PAYABLES TURNOVER RATIO

7 WCT RATIO

8 TOTAL ASSETS TURNOVER RATIO

9 FIXED ASSETS TURNOVER RATIO

10 CAPITAL TURNOVER RATIO

11 DEBT EQUITY RATIO

TOTAL LONG TERM DEBTS = SHAREHOLDERS FUNDS

12 TOTAL DEBT RATIO

TOTAL DEBTS = TOTAL ASSETS

OR

LONG TERM DEBTS + CURRENT LIABILITIES = TOTAL DEBTS + NET WORTH 13 INTEREST COVERAGE EBIT = INTEREST GROSS PROFIT = NET SALES
OR

14 GROSS PROFIT RATIO

100

NET SALES -COST OF GOODS SOLD = NET SALES 15 OPERATING PROFIT RATIO EBIT = Net Sales PROFIT (AFTER TAX) = NET SALES COST OF GOODS SOLD = NET SALES ADMINISTRATIVE EXPENSES = NET SALES OPERATING EXPENSES = NET SALES DIVIDENT PER SHARE = EARNINGS PER SHARE MARKET PRISE PER SHARE = EARNINGS PER SHARE

100

100

16 NET PROFIT RATIO

17 COST OF GOODS SOLD RATIO

100

18 ADMINISTRATIVE EXPENSES RATIO

100

19 OPERATING EXPENSES RATIO

100

20 DIVIDENT PAYOUT RATIO

100

21 PRISE EARNINGS RATIO