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    ramuraghavan264
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    Current ratio = Current Assets / Current Liabilities. Debt - Equity ratio = debt / Equity. Fixed charges coverage ratio = Interest + (Repayment of Loan) / 1 - Tax rate. Turnover ratio = COGS / Average Inventory. Fixed assets turnover ratio = net sales / Average net fixed assets.

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    Current ratio = Current Assets / Current Liabilities. Debt - Equity ratio = debt / Equity. Fixed charges coverage ratio = Interest + (Repayment of Loan) / 1 - Tax rate. Turnover ratio = COGS / Average Inventory. Fixed assets turnover ratio = net sales / Average net fixed assets.

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    9 views2 pages

    Ratios

    Uploaded by

    ramuraghavan264
    Current ratio = Current Assets / Current Liabilities. Debt - Equity ratio = debt / Equity. Fixed charges coverage ratio = Interest + (Repayment of Loan) / 1 - Tax rate. Turnover ratio = COGS / Average Inventory. Fixed assets turnover ratio = net sales / Average net fixed assets.

    Copyright:

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    of 2

    LIQUIDITY RATIOS 1. Current ratio = Current Assets / Current Liabilities 2.

    Acid test ratio = Quick Assets / Current Liabilities (Quick Assets = Current Assets Inventories) 3. Cash Ratio = (Cash and Bank balances + Current Investments) / Current Liabilities

    LEVERAGE RATIOS 1. Debt Equity ratio = Debt / Equity 2. Debt Asset ratio = Debt / Assets (Assets = balance sheet total assets; Debt = Short term + Long term debt) 3. Interest Coverage ratio = PBIT / Interest PBIT + Depriciation 4. Fixed charges coverage ratio = Interest + (Repayment of Loan) / 1 Tax rate

    5. Debt service coverage ratio = PAT + Depreciation + Other non cash charges + Interest on Term loan + Lease rentals Interest on Term loan + Lease rentals + Repayment of Term loans

    TURNOVER RATIOS 1. Inventory turnover ratio = COGS / Average Inventory 2. Debtors turnover ratio = Net credit sales / Average sundry debtors 3. Average collection period = Average sundry debtors / Average daily credit sales = 365 / Debtors turnover 4. Fixed assets turnover ratio = Net sales / Average net fixed assets 5. Total assets turnover ratio = Net sales / Average total assets

    PROFITABILITY RATIOS

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