I

LIQUIDITY RATIOS 1 Current Ratio = Current Assets Current Liabilities Current Assets - Inventory Current Liabilities Cash in hand + Cash in bank Current Liabilities

2 Acid Test/ Quick Ratio =

3 Cash Ratio =

II

LEVERAGE RATIOS 1 Debt Equity Ratio = Total debt (Long term + Curent Liabilities) Shareholders funds (Equity+Preference) Total Debt Total Assets

2 Debt Asset Ratio =

3 Interest Coveragee Ratio =EBIT Interest

III

TURNOVER RATIOS 1 Inventory Turnover Ratio =Sales Average Inventory 2 Debtor's Turnover Ratio = Net Credit Sales Average Debtors 3 Fixed Asset Turnover RatioSales = Average Fixed Assets 4 Total Asset Turnover Ratio Sales = Average Total Assets

(Avg Inventory = (Opening + Closing Inventory)/2

IV PROFITABILITY RATIOS 1 Gross Profit Ratio = Gross Profit Sales Net Profit Sales PAT Average Total Assets NOPAT Average Total Assets NOPAT = PBIT(1-tax)

2 Net Profit Ratio =

3 Return on Assets =

4 Return on Capital Employed =

5 Return on Equity =

PAT - Preference Dividend Average Equity + Reserves & Surplus

V VALUATION RATIOS 1 Price Earning Ratio = Market Price of a share Earning Per Share Dividend (or) Interest + Capital Gain (i.e. Price Change) Initial Market Price

2 Yield =

ing Inventory)/2

3 Market Value to Book Value Ratio Market Value = Book Value

PBIT(1-tax)

in (i.e. Price Change)