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FINANCIAL RATIOS

NATIONAL
FERTILIZERS LTD.
RATIO ANALYSIS
1) LIQUIDITY RATIOS
CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILITIES
= 2085.75
797.65
=2.61:1
QUICK RATIO = CURRENT ASSETS – CLOSING STOCK
CURRENT LIABILITIES
=2085.75 – 347.12
797.65
= 2.18:1
2) TURNOVER RATIOS
CAPITAL TURNOVER RATIO = COST OF SALES
NET WORKING CAPITAL
=opening stock+stock purchased-closing stock

0.867
3) PROFITABILITY RATIOS
RETURN ON NET ASSETS = NET INCOME
FIXED ASSETS+WORKING CAPITAL
=10.87%
RETURN ON EQUITY = NET INCOME
AVERAGE SHAREHOLDER’S EQUITY
=34.96%

RETURN ON CAPITAL EMPLOYED = EBIT


CAPITAL EMPLOYED
=8.78%
4) LEVERAGE RATIOS
DEBT EQUITY RATIO = LONG TERM DEBT+VALUE OF LEASES
AVERAGE SHAREHOLDER’S EQUITY
= 0.25:1

5) MARKET RATIOS
EARNING PER SHARE = NET EARNINGS
NUMBER OF SHARES
= RS. 3.50

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