Term Formula Global Value Average Comments Examples

Value
Current Ratio Current Assets/Current 0.44 0.59 Fit to meet short term Cash and equivalents.
Liabilities commitments Short-term investments
(marketable securities)
Accounts receivable.
Inventory.
Prepaid expenses.
Any other liquid assets.
Quick Ratio (current 0.38 0.54 as compared to the standard ratio Cash
assets-inventories)/current of 1:1 and the industry average, accounts receivable
liabilities the current ratio of Global Vectra marketable securities
(Or) Helicorp Ltd. is behind and has
(Cash+Accounts been constantly increasing
Receivable)/liabilities
Absolute Liquid (Cash + Marketable Value less than This shows the company's cash in hand and at bank and
Ratio Securities)/Current 1 everyday cash management is in marketable securities or
Liability not a decent condition. temporary investments
Equity ratios (total shareholders' Value should depended more on Debt funding common stock
equity) / (total assets of be greater which maybe risky as companies preferred stock
the company) than 0.5 tend to pay more interest on contributed surplus
debt/loans irrespective of the additional paid-in capital
retained earnings
company generating profit or not.
other comprehensive earnings
treasury stock
Debt Ratio Total Debt/Total assets 0.5 is less Global Vectra Helicorp Ltd. had
risky almost two times of debts in
comparison to its assets which is
a bad sign for the business.
Debt to Equity Total liability/shareholder 8.5761 means that the company had
Ratio equity approx 8.5 times funding from
Debt like external loans in
comparison to the equity, which
may be a risk for the company.
Debt to Total Total liabilities/total assets 0.4 is Since, Global vectra Helicorp
Assets Ratio considered to Ltd. has highest ratio in 2019,
be the ideal which means company has
comparatively more of the
liabilities then in year 2018, or
 other years. Global Vectra
Helicorp should focus on
lowering the Debt to asset ratio
which means that company has
more assets than Liabilities and
could pay off the same through
the excess assets.
Proprietary Shareholder’s equity/Total of 0.5 is in 2020 when the ratio is lowest
Ratio assets considered i.e., 0.0982, it indicates that the
ideal creditors will lose interest for
providing finance to Global
Vectra Helicorp Ltd.
Interest EBITDA/Interest Expense 3.1858 (earnings before interest, taxes,
Coverage ratio depreciation, and amortization),
2017-did well and financially
secure, 2020- interest payable to
the outsiders are comparatively
more than the Earnings of the
company
Gross profit ratio (Revenue-Cost Of Goods The industry average Gross profit
Sold)/Revenue Ratio in 2017 is 9.98% and the
Global Vectra Helicorp Ltd.
performed well and managed to
earn a good amount of gross
profit i.e., 12.64 which is even
more than the average of the
industry. In 2020 also when the
industry average Gross profit
ratio was negative i.e., -107.10
then also the company managed
to earn a handsome profit that too
more than the average.
Net Profit Ratio (Revenue-Cost)/Revenue highest in 7.18% When the Industry Average was
2016 i.e., lowest i.e., -160.60% then also
6.64% the company earned profits and
the Net profit Ratio was 0.46%
Operating Profit It includes material cost, Higher ratio Global Vectra Helicorp Ltd. has
Ratio direct, depreciation and indicates a done remarkably well in the FY
amortization better 2017 i.e. 12.64% which is the
management highest among the 5 years. In FY
 of the 2019, company’s operating profit
resources and declined but company managed
better to increase the profit in 2020.
operational
efficiency
Return on Assets Net Income/Total Assets In 2018 ROA is negative 0.15%
Which suggests that the
company can't use its assets
effectively to generate income in
this year while in 2017 the
company witnessed 5.52% ROA
is highest in all 5 years telling us
that company used its assets
most effectively.
Return on Equity Net Income/Shareholder’s While the industry average for
Equity ROE was lowest in the year 2018
i.e. -327.51% but then also
Global Vectra Helicorp Ltd.
managed to bring its ROE to
29.45%, this shows that the
company outperformed its rivals.
Similarly in 2019, company had
an ROE Ratio of -0.79% Profit
was comparatively low with
respect to the Shareholders fund.
Return on EBIT/Capital Employed between indicating that the capital is
Capital employed 6.79% to inefficiently used
15.24%
Earning Per (company's Global Vectra Helicorp Ltd. has
Share profit)/(outstanding not been performing well
shares of its common
stock)
P/E Ratio(Price Share Price/Earning Per Share The P/E ratio was negative as of
to Earnings) March 2018 indicating that the
company is losing money and
should this continue, will be at a
possible risk of bankruptcy.
Total Assets (net sales or the company’s assets have been
Turnover Ratio revenue)/(average total inefficient in generating revenues
assets) in the past 2 years
Fixed Assets (net sales) / (net of its
Turnover Ratio property, plant, and
equipment.)
Capital Turnover Net annual sales /
Ratio Working capital
Current Asset net sales or revenue /
Turnover Ratio average total assets.
Working Capital Net annual sales /
turnover Ratio Working capital
Inventory / stock (the cost of goods sold) /
turnover ratio (the average inventory for
the same period)
Inventory Days It is characterized as the
quantity of days on average
for which the organization
holds its inventories
Receivables net sales / average
(Debtor) account receivables
Turnover ratio
Average 365/ Average Receivable
Collection Period Turnover ratio
The fixed assets turnover ratio buildings, computer
has increased significantly from equipment, software, furniture,
2018 to 2020 and this is a clear land, machinery, and vehicles
sign of a positive change
There has been a decline of 1.47
between 2019 and 2020 but
overall, it has been performing
good and so, the company has
been running smoothly and
doesn’t really require any
additional funding.
The current asset turnover ratio
for Global Vectra Helicorp Ltd.
has been substantially high and
this is a clear indication of good
performance.
The working capital turnover
ratio saw the biggest incline
between 2018 and 2020 but has
been average throughout.
between 53.35 The organization has failed to
18.12 and and meet expectations when
21.20 67.45 contrasted with the industry
average showing that the
organization struggles to sell its
stock
Global Vectra Helicorp Ltd. has
increased over the long haul and
thus the organization needs to
focus on elevating its products to
ensure faster sales
between 7.46 between A lower receivables turnover
and 10.43 45.08 ratio indicates that the
and organization should reassess its
53.21 credit policies to ensure an
opportune assortment of its
receivables
The average collection time of
Global Vectra Helicorp Ltd. is
 high during 2020 and 2019 which
shows that the credit system has
become uneconomical which
could be because of the absence
of subsequent meet-ups or other
such issues.
Payable the average number of days This shows that the organization
(Creditor) that an amount due to a has a lot of cash accessible to
Turnover Ratio creditor remains take care of its short-term
unpaid. Dividing that obligation in an ideal way. This
average number by 365  could portray a good image to
potential investors too.
Average Total Credit The company has considerably
Payment period Purchases/Days decreased its payable days by
over 14%. This could also impact
the company’s credibility
positively.
Employee Cost to EmployeeBenefit Expenses Workforce proficiency goes up as
revenue the employee cost to income ratio
/ Revenue
decreases, which is the reason the
lower the ratio, the better it is
intended for a business. The ratio
must be contrasted consistently
with have the option to follow the
proficiency of work in creating
income at each given period. In
this case, the ratio as almost
remained constant throughout, so
there is no change in efficiency.
Other Expenses Other expenses/ Sales The smaller the ratio, the
to Sales Ratio
better the chances are that
the organization has to
create profits, regardless
of whether the revenues
go down. In this case, the
ratio has been constant
which concludes to
no/minimum change in
profits.