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noth er 4 Shore haldes: Tuned, Shewe Capital 3 Reserves evel surplus (B Tosted. Assefstoclebt Rahs = Todal Assets / Long term debt : Prhigher raho means higher Safety +0 the tandewst creditors cc) Proprietary Radia Proprieter's fund C sherechelder’s Ferd Fotel Aacebs ail —_A_hgher Propnietory Ratio if (ongidered as better fr all Concenne Total Asst = Total Assets = PreMinnineny Exp-= Intangible Sido (d)_Inderes+ Coverage PaHe= toe may Judge “he debt servi . age of Him = Profil bene Inteved soy pal Interest on long ‘term debt Fines if Glade 3. Adak vaity_ot_Effclenyp Rabie ve ——(p) Thventory Tornever act of \ ‘ mtd = _Opening_}y pg Sastry + Nek pit + Dbet Bp = ee losing Tinenteyy net sales- Goss 1 (+ bo bos Avarye Inventory 2 | ening Bnsentiny + Clanirs Dnveventay /2 The higher Trventury rahho “he beter this_a lower rate trebiiate over stocky Trade Receivable Tumover Ratio) Debter Tymover Rate = - = Net credit-sales_/ prerage Bids sancarg dphlers (28:.) Net Credit Sales = Todul Credit sales - Sales return Prrerage bitstandin debtus = opening clebhers Clas! debtor /2. Doubtful dest 3 Geist ate not tobe deebyted deducted — Higher vai is Considered, beller as id: inclicades treet del ore — Collected reco promptly Whereas a lower ratio indiodes—_—— inefficiency in lellechin of debt or increased onedit peniad cermtnane bouOte Prahns Nelasys ie hs) == as Peri TF receedles Tommever Chi Pralys’s Si Financial Stedenent , Rabi. Aradysit Typeof Rods s[iliquilddy Kedia tar Coment Padre (b Reid test /Liquel | auice Robie _4&Shnderm _selvency) @) Solvency Ratio + long Term Solveny Kepory its olelst) Co) Debit Equidy. falta = Lng tevam lel / Equity Cshene holler fond “(bi Tada! Aesels to debt Rabo cr Propriety fake > Indore Coverage Redts ee — @ Achwity or Efficiency Radio ca> Invenkny Tumaler a (b) Trade Rereivables Tum dyer Rodis > Average Codlechin Persia Debt Collection fend Radin axl CC) Trade pospbles Tinmerter Febto Gs Aversge Paspment Pesiod (4) works: Copida| Tom aver Bohlo 4) Profitability Robins Gress Profit Radio cb) operating fabio © openadneg “Profi foo Gly net Profit Rabie) Redan on investment 19 Lyquiclit Podo = shaw shor} term Liehllity -tdeal kahi= 26 less Tran Vs dairy arous Cidhen Curent Uabibty, are. grescten than. Cuwent Aste 2 @) Curent Raton = Cument Acsels 1 ly __ Gmrenk ee Ciadsibdies (6) Acid Fest) Lignyd |quick Podie = Ciqute) Assets a foe) erent Liabibhes _

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