RATIO ANALYSIS

T Y P E S O F R A T IO S

P R O F IT A B IL IT Y R A T IO S S O L V E N C Y R A T IO S A C T IV IT Y R A T IO S M IS C E L L A N E O U S R A T IO S
 T Y P E S O F P R O F IT A B IL IT Y R A T IO S

N E T P R O F IT R A T IO R E T U R N O N E Q U IT Y R A T IO

O P E A R T IN G R A T IO G R O S S P R O F IT R A T IO

R E T U R N O N IN V E S T M E N T R A T IO
 T Y P E S O F S O LV E N C Y R A T I O S

SHO RT TERM LO NG TERM

CURRENT L I Q U ID D E B T -E Q U I T Y DEBT TO TOTAL FUNDS P R O P R IE T O R Y C A P IT A L G E A R IN G

 T Y P E S O F A C T IV IT Y R A T IO S

DEBTO R TURNO VER F IX E D A S S E T S T U R N O V E R

STO CK TURNO VER C R E D IT O R S T U R N O V E R W O R K IN G C A P IT A L T U R N O V E R

 M I S C E LA N E O U S R A T I O S

P R IC E E A R N IN G IN T E R E S T /D IV ID E N D C O V E R A G E D IV ID E N D P A Y O U T
IMPORTANT QUESTIONS
 Q1 A firm CL 90000 .It acquired stock 10000 on credit., after
this CR was 2:1
 Find CA & WC After & Before the stock was
acquired

 Q 2 10% Preference Share Capital, 5000000 Equity Share

Capital 7000000(Fv 100),PAT 1500000 , Equity Dividend 10%,
Mkt Price Rs 200 per share.
 Find Cover For Preference Dividend, Cover for
Equity, Cover for Both, EPS, P/E

 Q3 ROI 25%,Tax 60% , 15% Loan 1500000 as capital

employed,
 Find Gain to shareholders
 Q4 Find C/B Drs ,C/B Stock, C/B Crs, Share
Capital FA, Cash, shareholders’ funds
STR6, CTR 5,DTR 6,GP20%,Closing stock more
than opening stock by 10000 GP 120000
Reserves 40000 COGS/FA=4, COGS/,
shareholders’ funds=2

 Q5Prepare Final Accounts:

GP 36%, STR 20, Tax 40%, Opening Stock 9200 ,
Closing Stock 10000, NP 12%
Q6 CR2.5, LR1.3,FA/PF 0.6, GP10%, Debtors Velocity
40days,sales 730000, WC120000, Bank
Ovedraft15000,shareCapital 250000,Closing Stock
more than opening stock by10%, NP is 10% PF
Prepare Final Accounts

Q7Prepare B/S
Share Capital50Lakh,Car 125 Lakh,
Sales500Lakh, GP25% Credit Sales80%of net
sales,CR2,STR 4, FA Turnover 2, Sales Return 20%
of sales, DTR 5,Bank credit to trade credit 2,Cash
/Inventory 1:15, Total debt to CL 3