Ratio Analysis Formulae

S.No. Ratios Formulas

1 Current Ratio Current Assets/Current Liabilities

Quick Assets/Current Liabilities

2 Quick Ratio
Quick Assets = Current Assets – Inventory – Prepaid Expenses

3 Gross Profit Ratio Gross Profit/Net Revenue of Operations × 100

Operating Cost Ratio (Cost of Revenue from Operations + Operating Expenses)/Net Revenue from Operations ×100
4
Operating Profit Ratio Operating Profit/ Revenue from Operations × 100

5 Net Profit Ratio Net profit/Revenue from Operations × 100

Return on Investment Ratio Net Profit After Interest And Taxes/ Shareholders Funds or Investments X 100
6
Inventory Ratio Net Sales / Inventory

7 Debtors Turnover Ratio Total Sales / Account Receivables

Debt Collection Ratio Receivables x Months or days in a year / Net Credit Sales for the year
8
Debt Equity Ratio Total Long Term Debts / Shareholders Fund

9 Proprietary Ratio Shareholders Fund/ Total Assets

Capital Gearing ratio Equity Allocation Funds / Specified Interest Bearing Funds
10
Debt Service Ratio Net Earnings Before Welfare & Taxations / Fixed Welfare Payments

11 Overall Profit Ability Ratio Net Profit / Total Assets