RATIOS QUESTION BANK

LIQUIDITY & TURNOVER RATIOS
Q1] The following details are given (all items are to be considered short-term in nature):  Inventories = 1,50,000  Receivables = 3,00,000  Prepaid Expenses = 30,000  Payables = 1,80,000  Cash = 20,000  Bank = 50,000  Bills Receivable = 40,000  Bills Payable = 50,000  Loan to Directors = 10,000  Advances from Customers = 20,000  Outstanding Expenses = 60,000  Short Term Debt = 90,000 Calculate (i) Current Ratio = 1.5 : 1 (ii) Quick Ratio = 1.05 : 1 (iii) Cash Ratio = 0.175 : 1 Using the information from question 1, and the given additional information:  Sales = 21,00,000  Purchases = 12,00,000  Cost of Goods Sold = 19,00,000 Particulars Opening Closing Inventory 1,10,000 1,50,000 Receivables 2,00,000 3,00,000 Payables 1,40,000 1,80,000 Fixed Assets 9,00,000 7,00,000 Calculate (i) Fixed Assets Turnover Ratio = 2.625 times (ii) Total Assets Turnover = 1.5 times (iii) Inventory Turnover = 14.6 times (iv) Receivables Turnover = 8.4 times (v) Payables Turnover = 7.5 times (vi) Inventory Holding Period = 25 days (vii) Average Collection Period = 44 days (viii) Creditors Payment Period = 49 days (ix) Cash Conversion Cycle = 20 days

Q2)

10. 1.5 25 44 49 20 Previous Year 1.8 1.625 1. 10.000  R&S = Rs.00.4 7.000  Interest Expense = Rs. 40.02 0.4 1.00.00.5 1. 4.00.4 7. calculate the following ratios  Net Sales = Rs.1 0.00.62 / 0.9 26 47 50 23 CAPITALIZATION / LEVERAGE RATIOS Q4) Using the given information. 6.33 / 0.6 / 2.25 (iv) Capitalization Ratio = 0. 20.000  Opening Stock = Rs.175 2.2 16.6 9.00.000  CL = Rs. calculate the following ratios:  ESC = Rs.00.000  12% PSC = Rs.27 (iii) Debt-Equity Ratio = 1.000  CA = Rs.00.6 8.8 7.00.69 (v) Capital Gearing Ratio = 0.00. 50.9 6.6 1. 4. 8.15 2.000  NCA = Rs.000  NCL = Rs.Q3) In addition to the information in question 1 & 2 the following additional information is provided: Particulars Current Ratio Quick Ratio Cash Ratio Fixed Asset Turnover Total Assets Turnover Inventory Turnover Receivables Turnover Payables Turnover Inventory Holding Period Average Collection Period Creditors Payment Period Cash Conversion Cycle Current Year 1.000 Calculate the following ratios: (i) Debt-Assets Ratio = 0.4 14.00.000 .000  Net Purchases = Rs. 6.16 2. 2.44 PROFITABILITY RATIOS Q5) Using the given information.00.000  Wages = Rs.6 22 39 48 13 Industry Ratio 1.4 1.00.5 14.67 / 0.05 0.73 (ii) Equity-Assets Ratio = 0. 32.000  Other Expenses = Rs.

00.000 COVERAGE RATIOS Q7) Using the above information compute the following ratios: (i) Interest Coverage Ratio (ii) Dividend Coverage Ratio (iii) Debt Service Coverage Ratio (iv) Fixed Charges Coverage Ratio .00.00.00.00.00.43 DPS = 1.72. 3.000 32.000 10.00.00.00.000 54.000 PY 6.000 Rs.38% CY 6.000 Rs.000 Gross Profit Margin = GP/Sales = 45% EBITDA Margin = EBITDA/Sales = 30% Operating Profit Margin = EBIT/Sales = 20% Pretax Profit Margin = EBT/Sales = 15% Net Profit Margin = NP/Sales = 10.000 4. 4.000 4.000 10.000 8.000 8.000 120.000 4. of Equity Shares No.000 6.67 Using the above information & given information calculate the following ratios: PARTICULARS ESC R&S 12% PSC NCL CL NCA CA Calculate (i) (ii) (iii) (iv) Return on Assets = 7% Return on Equity = 23.25% ROCE = 10.00.00. of Preference Shares Closing Stock = = = = = = Rs.7% EP = 15. 2.00.000 7.00.       Calculate (i) (ii) (iii) (iv) (v) (vi) (vii) Q6) Depreciation Tax @ 30% Preference Dividend Equity Dividend No.5% EPS = 1.00.28.000 Rs.00. 48.000 50.000 34.

100 each NCL CL NCA CA Sales Purchases Opening Stock Closing Stock Direct Expenses Rent Received Other Expenses Depreciation & Amortization Interest Tax @ 30% Preference Dividend is paid Equity Dividend @ 10% is declared MV Debt MV Equity Inventory Receivables Cash & Cash Equivalents Other CA Payables Calculate (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) P/E Ratio P/BV Ratio P/S Ratio EV/EBITDA Ratio Earnings Yield Dividend Yield Interest Coverage Ratio Dividend Coverage Ratio Current Ratio Quick Ratio Cash Ratio Fixed Assets Turnover CY 20 20 10 60 40 100 ? 80 40 5 6 6 2 7 5 5 80 60 6 10 12 22 14 .VALUATION RATIOS Q8) PARTICULARS ESC of Rs 10 each R&S 10% PSC of Rs.

(xiii) Total Assets Turnover (xiv) Inventory Turnover (xv) Receivables Turnover (xvi) Payables Turnover (xvii) Inventory Holding Period (xviii) Average Collection Period (xix) Payables Payment Period (xx) Cash Conversion Cycle (xxi) Debt-Assets Ratio (xxii) Proprietary Ratio (xxiii) Debt-Equity Ratio (xxiv) Capitalization Ratio (xxv) Capital Gearing Ratio (xxvi) Gross Profit Margin (xxvii) EBITDA Margin (xxviii) Operating Profit Margin (xxix) Pretax Profit Margin (xxx) Net Profit Margin (xxxi) Return on Assets (xxxii) Return on Equity (xxxiii) Return on Capital Employed (xxxiv) Earning Power (xxxv) EPS (xxxvi) DPS (xxxvii) Payout Ratio (xxxviii) Retention Ratio (xxxix) Debt Service Coverage Ratio (xl) Fixed Charges Coverage Ratio .

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