Working Capital Turnover :

Fixed asset turnover

Total asset turnover
Inventory turnover
Days of inventory on hand (DOH)
Receivables turnover
Days of sales outstanding (DSO)
Payables turnover
Number of days of payables
Activity Ratio

Debt-to-assets ratio
Debt-to-capital ratio
Debt-to-equity ratio
Solvency Ratio leverage ratio

Interest coverage
Coverage Ratio Fixed charge coverage

ROE
Return ratio RoA
ROCE

P/E
P/CF
P/S // Ev /Sales // MCAP /Sales
P/BV
Valuation EV/ EBITDA

EBITDA Margin / Operating Margin'

Margins PAT Margin / Net profit margin

Current Ratio
Liquidity Quick Ratio

Dividend payout
Dividends Dividend yeild
Num Deno
Revenue WC

Revenue Average net fixed assets

Revenue Average total assets
Cost of sales Average inventory
Number of days in period Inventory turnover
Revenue Average receivables
Number of days in period Receivables turnover
Purchases Average trade payables
Number of days in period Payables turnover

Total
Total debt
debt Total assets
Total debt + Total shareholders’ equity
Total debt Total shareholders’ equity
Average total assets Average Total Equity

EBIT Interest payments

EBIT + Lease payments Interest payments + Lease payments

Net income Average equity

Net income Average Assets
EBITDA Total Capital(Equity + Debt)

Market Price Earnings per share

Marker Price Cash flow per share
Price / EV / Market Cap Sales
Market Price BVPS
EV EBITDA

EBITDA/ Operating Profits Sales

PAT Sales

CA CL
CA- Inv CL

Dividends Earnings
Dividends Market Price
Value Investor Valution
Grwoth Investor Growth

Ration analsys
Time series
Same company over time
Inc Dec
Good Not good

Good Not Good

Good Not good
Bad Good

Good Bad

Bad Good
Good Bad

Not Good Good Sign

Incr the risk Dec the risk
Incr the risk Dec the risk
Lower is the risk Higher is the risk

Good Sign Bad Sign

Good Sign Bad Sign

Good Bad
Good Bad
Good Bad

Bad Good
Bad Good
Bad Good
Bad Good
Bad Good

Good Bad
Good Bad

Good Bad
Good Bad

Value - Inc- Bad // Growth Inv - Good Value - Dec- Good // Growth Dec - bad
Value - Inc- Bad // Growth Inv - Good Value - Dec- Good // Growth Dec - bad
 Goes down when Div pay increases' Goods Sign
Goes down when Div pay increases reatained profBad Sign

Ration analsys
Cross sectional
Different companies in the same sectot
 Indicated
How efficently you use working capital

How efficiently the firm is using its FA

How efficiently total assets are used by the firm
Efficiency of Investory management '
Depends on the industry
How efficiently the recevables translate into revenues
Depends On average how long does it take you to recover your credit sales
Suppliers credit

How does your assets compare to debt

How much proportion of capital comes from Debt

How much assest does a share holder have

How well can you cover your int

How well can you cover your int and lease payment

How much money is the company generating on share holders fund

Efficiency of Assets
How much money is the company generating ontotal fund

Inc indicated over valuation // Decrease Indicated Undervluation

Inc indicated over valuation // Decrease Indicated Undervluation
Inc indicated over valuation // Decrease Indicated Undervluation
Inc indicated over valuation // Decrease Indicated Undervluation- very Imp ratio for financial firms
Inc indicated over valuation // Decrease Indicated Undervluation- very Imp ratio for financial firms

Inc- Better operating efficency // Dec indicates less operating efficiency

Inc- Total effiencey increa// Dec - Total effienecy falling

Indicated liquidity position'

Indicated liquidity position'

/ Growth Dec - bad

/ Growth Dec - bad
 2015 2016 Interpretation'
HUL 43.8 45.7 Bad - Either for the same earnin
Colgate 44.2 42.9 Good Sign - Either for same earn
Infy 19.1 17.5 Good Sign - Either for same earn
Lupin 27.4 29.1 Bad - Either for the same earnin

Maruti 2015 2016

Mcap / Sales 3.6 3.1
EV/Sales 3.5 3.1
EV/EBITDA 26.5 19.7
P/E 48.0 39.0
P/BV 7.5 6.6

EBITDA Margin % 13 16
PAT Margin % 7 8

Titan Div 0.50%

NMDC Div 8%

Ration analsys
Time series
Same company over time
Overvaluation
Under valuaution
Under valuaution
Overvaluation

Intre
GOOD Sales are better for the price charged
GOOD Sales are better for the price charged
Good' Operating profit is better for the price charged
GOOD NI / Pat is better for the price charged
GOOD Assets are better than for the price charedc

Good Operating eff has increased

Good Over all efficiency has imp P/E

447.9 2.2395 55.875

137 10.96 17.125

100000 8000

Ration analsys
Cross sectional
Different companies in the same sectot