Sr.

no Name of the paramaeter

A ratio / parameter
1 Liquidity Ratio
2 solvency ratio
3 profitability ratio
4 activity ratio
5 valuation ratio
B
6 share capital to reserve / 5 yrs trend in reserves
7 free cash flows
8 shareholding pattern= pledged share
 how to calculate
current ratio= current Assets/ current liablities
Debt to equity ratio= total long term debts/ shareholders' funds
return on capital employed(ROCE)= EBIT/ total capital employed
Inventory Turnover Ratio= COGS/ Average inventory
P/E Ratio= market price per share/ earning per share

cash flow from operation = purchase of fixed assets + sales of fixed assets

price to BV ratio = price per share / book value per share

 what do we achive
understanding the liquidity position of the company
analysing the capital structure
measures profitability/ return on money invested
measures operational efficiency
how costly the share is

measures free cash available with the company for operation for operation of the business
understand the number of shares pledge by promoters
 iterpretation
ideal 2:1
max 2:1
higher the better (atleast 10%)
higher the better (it determines the number of times inventory was replanished)
higher = costly;lower= cheap

Increasing trend in reserves = Good. Higher the ratio = better chances of getting bonus shares/ dividend
higher the better
more number of pledge shares= bad sign = should be idly 0