ANNEXURE I:

FORMULAS USED IN ANALYSIS & INTERPRETATION OF WORKING CAPITAL MANAGEMENT:1. WORKING CAPITAL:WORKING CAPITAL = CURRENT ASSETS CURRENT LIABILITIES

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UNITED INSTITUTE OF TECHNOLOGY NAINI, ALLAHABAD

ANNEXURE II:
FORMULAS USED IN ANALYSIS & INTERPRETATION OF RATIOS:1. Current ratio:[Current Ratio = Current Assets / Current Liabilities] Or [Current Assets : Current Liabilities]

2. Liquid ratio:[Liquid Ratio = Liquid Assets / Current Liabilities] 3. Gross profit ratio:[Gross Profit Ratio = (Gross profit / Net sales) 100] 4. Net profit ratio:[Net Profit Ratio = (Net profit / Net sales) 100] 5. Return on Capital Employed Ratio (ROCE Ratio): [Return on Capital Employed=(Adjusted net profits*/Capital employed)100] 6. Dividend Payout Ratio: [Dividend Payout Ratio = Dividend per Equity Share / Earnings per Share]

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7. Inventory turnover ratio:(a) [Inventory

Turnover Ratio = Cost of goods sold / Average inventory at

cost] (b) [Inventory Turnover Ratio = Net Sales / Average Inventory at Cost] (c) [Inventory Turnover Ratio = Net Sales / Average inventory at Selling Price] (d) [Inventory Turnover Ratio = Net Sales / Inventory] 8. Debtors turnover ratio or accounts receivable turnover ratio [Debtors Turnover Ratio = Net Credit Sales / Average Trade Debtors] 9. Fixed assets turnover ratio: Fixed Assets Turnover Ratio = Cost of Sales / Net Fixed Assets 10. Working capital turnover ratio:[Working Capital Turnover Ratio = Cost of Sales / Net Working Capital]

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UNITED INSTITUTE OF TECHNOLOGY NAINI, ALLAHABAD