Ratio Analysis

Current Ratio Current Assets

Current Liabilities

Liquid Ratio Quick Assets

Quick Liabilities

Proprietors Ratio Proprietor's Funds X 100

Total Assets Fixed Assets + Long Term Inves

Gross Profit Ratio Gross Profit X100

Net Sales

Stock Turnover Ratio Cost of Goods Sold

Average Stock

Debt Equity Ratio Long Term Debt Borrowed Funds

Propreitors Equity Share Capital + Reserve and Surplus - Fic

Stock to Working Capital Ratio Closing Stock X 100

Working Capital

Gross Profit Ratio Gross Profit X 100

Net Sales

Operating Profit Operating Net Proft X 100

Net Sales

Net Profit Ratio Net Profit After Tax X 100

Net Sales

Return on Investment Earnign Before Interest and Tax X 100

Capital Employed

Debtors Tunover Credit Sales

Average Debtors + Average Bills Receivbles

Debtors Velocity Average Debtors + Average Bills Receivbles X 365

Credit Sales

Creditors Turnover Credit Purchases

Average Creditors + Average Bill Receivbles

Creditors Velocity Average Creditors + Average Bill Receivbles X 365

Credit Purchases

Capital Turnover Ratio Sales

 Capital Employed

Operating Ratio COGS + Operating Expenses X 100

Net Sales

Interest Coverage Ratio Earning Before Interest and Tax

Interest Expense

Debt Service Coverage Ratio Net Profit After Tax + Depreciation + Interest
DSCR Interest + Loan Principal Repayment

Working Capital Turnover Net Sales

Average Working Capital
 xed Assets + Long Term Investment+ Current Assts

al + Reserve and Surplus - Fictitius Asset= Net Worht

Receivbles

Receivbles X 365

Receivbles

Receivbles X 365
n + Interest
 Particulars Rs Rs
1) Gross Sales 125
2) Less Returns and Allowances 1
3) Net Sales (1-2) 124
4 ) Less : Cost of Goods Sold
a ) Opening Stock 25
Add b ) Purchases- Gross Returns 45
c ) Direct Expenses 2
D) Direct Wages 3
e) Depreciation on Machinery 4
f) Depreciation on Factory Building 1
Less g) Closing Stock 5
Less Sale of Scrap 2
Cost of Goods Sold 73
5) Gross Profit (3-4) 51
Add Operating Income
a )Discount on Purchases 1
b )Discount Received 1
c )Recovery on Bad Debts 1
Total Operating Income (a+b+c) 3