EXERCISE NO 2

ERCISE NO 2 RATIO ANALYSIS

 Proftability Ratio Liquidity Ratio
A) Gross Profit Ratio A) Current Ratio
Gross Profit 200,000 Stock
Sales 500,000 Debtors
Gross Profit Ratio 40 Cash At Bank
B) Net Profit Ratio Total Current assets
Net Profit 150,000 Current Liabilities
Sales 500,000 Current Ratio
Net Profit Ratio 30 B) Liquid Ratio
C) Operating Ratio Debtors
Cost of Goods Sold 300,000 Cash At Bank
Administrative Expenses 40,000 Total Liquid assets
Selling expenses 25,000 Current Liabilities
Total operating expenses 365,000 Liquid Ratio
Sales 500,000
Operating Ratio 73
D) Operating Profit Ratio
Operating Profit 135,000
Sales 500,000
Operating Profit Ratio 27
 Turnover Ratio
A) Stock Turnover Ratio
160,000 Gross Profit 200,000
80,000 Cost of Goods Sold 300,000
30,000 Average Stock 87,500
270,000 Stock Turnover Ratio 3.429
150,000 B) Fixed Asset Turnover Ratio
1.8 Sales 500,000
Fixed Assets 230,000
80,000 Fixed Asset Turnover Ratio 2.174
30,000
110,000
150,000
0.733
 PARTICULARS RATIO PARTICULARS
Gross Profit Ratio 40 Current Ratio
Net Profit Ratio 30 Fixed Asset Turnover Ratio
Operating Ratio 73 Gross Profit Ratio
Operating Profit Ratio 27 Liquid Ratio
Current Ratio 1.8 Net Profit Ratio
Liquid Ratio 0.733 Operating Profit Ratio
Stock Turnover Ratio 3.429 Operating Ratio
Fixed Asset Turnover Ratio 2.174 Stock Turnover Ratio
Total Result

Rati o ANALYSIS
200
180
160
140
120
100
80 Sum of Ratio
60
40
20
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 Sum of Ratio
1.8
2.174
40
0.733
30
27
73
3.429
178.136

Sum of Ratio
 Proftability Ratio Ratio Proftability Ratio
Gross Profit Ratio 40 Gross Profit Ratio
Net Profit Ratio 30 Net Profit Ratio
Operating Ratio 73 Operating Profit Ratio
Operating Profit Ratio 27 Operating Ratio
Total Result

PROFITABILITY RATIO
80
70
60
50
40
30
20
10
0
Gross Profit Ratio Net Profit Ratio Operating Profit Ratio Operating Ratio

Total
 Sum of Ratio Liquidity Ratio Ratio
40 Current Ratio 1.8
30 Liquid Ratio 0.733
27
73
170

LIQUIDITY RATIO
Total
2 1.8
1.8
1.6
1.4
1.2
1
0.8 0.7
0.6
0.4
0.2
0
Current Ratio Liquid

Operating Ratio
 Liquidity Ratio Sum of Ratio
Current Ratio 1.8
Liquid Ratio 0.733
Total Result 2.533

TURNOVER
QUIDITY RATIO 4

Total 3.5
3
2.5
2
1.5
1
0.733
0.5
0
Fixed Asset Turnover Ratio

Liquid Ratio Tota

 Turnover Ratio Ratio Turnover Ratio
Stock Turnover Ratio 3.429 Fixed Asset Turnover Ratio
Fixed Asset Turnover Ratio 2.174 Stock Turnover Ratio
Total Result

TURNOVER RATIO
4
3.5
3
2.5
2
1.5
1
0.5
0
Fixed Asset Turnover Ratio Stock Turnover Ratio

Total
Sum of Ratio
2.174
3.429
5.603