Qno Name of the ratio Forumula What is given

1 Operating Ratio Operating Exp/Sales Sales

2 Operating Ratio Operating Exp/Sales Expense
3 Asset Turnover Ratio Sales/Assets Sales
4 Debt to capital Debt/Debt + Equity Debt + Equity
5 P/E Price per share/ EPS EPS
6 Revenue per EmployeeRevenue/ No of employRevenue
7 Return on Equity Net income/Equity Equity

Additional Questions:
8 It wants to improve inventory days by 20%; while sale is expected to increase by 8%, what should be th
9 EBIT ratio to be improved by 16%, while sales is expected to increase by 4% only
 N/D ? change in N/D Change in ratio Table to refer
D 2% -6% 2
N -2% -8% 1
N 4% 10% 1
D -6% -20% 2
D 4% -16% 2
N 2% 8% 1
D 4% 20% 2

xpected to increase by 8%, what should be the inventory to achieve

to increase by 4% only
Answer
-4.12% In order to reduce my OE by 6%, we should reduce expense by 4% and increase revenue by 2%
6.52% In order to reduce the Operating Ratio by -8%, The expenses should be reduced by 2% and increase my
-5.45% In order to increase the Asset Turnover ratio by 10%, we should increase the sale by 4% or decrease th
-24.80%
-12.64%
-5.56%
24.80%
se by 4% and increase revenue by 2%
es should be reduced by 2% and increase my sales by 6.52%
hould increase the sale by 4% or decrease the asset by -5.45%