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21 Ratio Formula
21 Ratio Formula
Types of ratio
1. Liquidity ratio
2. Capital structure ratio
3. Turnover ratio
4. Profitability ratio
Liquidity ratio
Ratio Formula Remark
CA are those
assets intended to
be held for one
Current assets year.
Current ratio Current liabilities CL will expires
with in a year
Bank OD not
regarded as CL.
BY
V.GOKUL KRISHNA PAI
RATIO ANALYSIS
Equity means
share holder
funds
Eqty=share
capital +reserve
& surplus –
(miscellaneous
expn+ P&L debt
bal
Eqty is also
called as net
worth or
proprietor fund
Int. coverage EBDITA Earning before
ratio Interest depreciation, interest,
tax, amortization
Debt service EBIT+ lease rental
coverage ratio Interest+leaserental+(preference
dividend+ loan repayment) /1-t
BY
V.GOKUL KRISHNA PAI
RATIO ANALYSIS
Turn over ratio
Inventory turn CGS
over ratio Avg stck
(In times)
(Or) CGS=opg stk +
Avg stck *360 pur+csk
CGS
FA assets sales
turnover ratio FA
Working capital sales
turn over ratio working capital
Capital turn over sales Capital employed
ratio capital employed can be found out
by 2 ways
Debt +eqty
FA+working
capital
BY
V.GOKUL KRISHNA PAI
RATIO ANALYSIS
Profitability ratio
1. profitability on sales
G.P ratio GP GP= sales-CGS
Sales
Operating pft ratio Operating pft OP=GP-admin &
sales selling exp
It is also called as
costing pft (or)
EBIT(or)
Net operating
income
Net pft ratio PAT PAT=Pft After Tax
sales
2. profitability on investments
Return on capital PAT+INT Refer above
employed Capital employed
Written on eqty PAT
equty
3.Miscellaneous ratio
EPS Pft available to eqty SH
no. of share
DPS Dividends
no. of share
Dividend pay out ratio DPS
EPS
(Or)
Dividend amt
pft
PE ratio MPS
EPS
BY
V.GOKUL KRISHNA PAI