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  • RATIOS OF Financial Analysis

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    jigar9161
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    The document contains definitions and calculations for key financial ratios used to analyze the profitability, efficiency, liquidity, and cash flow of a business. These include gross profit margin, operating profit margin, return on capital employed, net asset turnover, current ratio, quick ratio, inventory turnover period, receivables collection period, payables payment period, and cash cycle. The ratios are calculated using figures from the profit and loss account and balance sheet such as revenue, cost of sales, expenses, assets, liabilities, inventory, receivables, and payables.

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    RATIOS OF financial analysis

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    The document contains definitions and calculations for key financial ratios used to analyze the profitability, efficiency, liquidity, and cash flow of a business. These include gross profit margin, operating profit margin, return on capital employed, net asset turnover, current ratio, quick ratio, inventory turnover period, receivables collection period, payables payment period, and cash cycle. The ratios are calculated using figures from the profit and loss account and balance sheet such as revenue, cost of sales, expenses, assets, liabilities, inventory, receivables, and payables.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    10 views4 pages

    RATIOS OF Financial Analysis

    Uploaded by

    jigar9161
    The document contains definitions and calculations for key financial ratios used to analyze the profitability, efficiency, liquidity, and cash flow of a business. These include gross profit margin, operating profit margin, return on capital employed, net asset turnover, current ratio, quick ratio, inventory turnover period, receivables collection period, payables payment period, and cash cycle. The ratios are calculated using figures from the profit and loss account and balance sheet such as revenue, cost of sales, expenses, assets, liabilities, inventory, receivables, and payables.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 4

    profit and loss account

    rvanue
    cost of sale

    gross profit

    administration exppenses
    distribution cost
    finance expenses
    profit before tax
    income tax expenses LIABILITY
    porfit after tax EQUITY
    NON CURRUNT LIABILITY
    CURRUNT LIABILITY
    gross profit mmargie
    gross profit/sales ASSETS
    NON CURRUNT ASSETS
    oprating profit margine ,(net profit ) CURRUNT ASSETS
    PBIT(profit before intrest and tax)/sales revanue

    ROCE
    PBTI/CAPITAL EPLOYEED*100

    NET ASSTS TURNOVER


    SALE REVANUE /CAPITAL EMPLOYED (NET ASSET)

    CURRUNT RATIO
    CURRRUNT ASSETS/CURRUNT LIABILITY

    QUICK RATIO
    CURRUNT ASSETES-IVENTORY/CURRUNT LIABILITY : 1

    INVENTORY TURN OVER PERIOD


    INVENTORY/COS*365

    RECIVABLE COLLECTION PERIOD


    TRADE RECEVABLS/CREDIT SALES*365
    PAYABLES PAYMENTS PERIOD
    TRADE PAYBELS/CREDIT PURCHASES*365

    CASH CYCLE
    INVENTORY TURN OVER PERIOD+RECEVABLES COLLACTION PERIOD-PAYABLS PAYMENT PERIOD
    RUNT LIABILITY

    RUNT ASSETS
    BLS PAYMENT PERIOD

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