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  • Ratio Formula Sheet 1636389582130

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    Punit
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    This document defines and provides formulas for various financial ratios used to analyze the liquidity, leverage, turnover, profitability, and valuation of a company. The ratios are grouped into liquidity ratios, leverage ratios, turnover ratios, profitability ratios, and valuation ratios. Formulas are provided for current ratio, acid-test ratio, debt-equity ratio, interest coverage ratio, inventory turnover ratio, debtors' turnover ratio, fixed assets turnover ratio, total assets turnover ratio, gross profit margin ratio, net profit margin ratio, return on assets, earning power, return on capital employed, return on equity, price-earning ratio, yield, and market value to book value.

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    This document defines and provides formulas for various financial ratios used to analyze the liquidity, leverage, turnover, profitability, and valuation of a company. The ratios are grouped into liquidity ratios, leverage ratios, turnover ratios, profitability ratios, and valuation ratios. Formulas are provided for current ratio, acid-test ratio, debt-equity ratio, interest coverage ratio, inventory turnover ratio, debtors' turnover ratio, fixed assets turnover ratio, total assets turnover ratio, gross profit margin ratio, net profit margin ratio, return on assets, earning power, return on capital employed, return on equity, price-earning ratio, yield, and market value to book value.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    17 views4 pages

    Ratio Formula Sheet 1636389582130

    Uploaded by

    Punit
    This document defines and provides formulas for various financial ratios used to analyze the liquidity, leverage, turnover, profitability, and valuation of a company. The ratios are grouped into liquidity ratios, leverage ratios, turnover ratios, profitability ratios, and valuation ratios. Formulas are provided for current ratio, acid-test ratio, debt-equity ratio, interest coverage ratio, inventory turnover ratio, debtors' turnover ratio, fixed assets turnover ratio, total assets turnover ratio, gross profit margin ratio, net profit margin ratio, return on assets, earning power, return on capital employed, return on equity, price-earning ratio, yield, and market value to book value.

    Copyright:

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

    Financial Ratio Analysis

    Ratio Formula
    Liquidity Ratio
    • Current Ratio Current Assets/ Current Liabilities
    • Acid-test Ratio Quick Assets/Current Liabilities
    Leverage Ratio
    • Debt-equity Ratio Total Liabilities/Shareholders Funds
    • Interest Coverage Ratio EBIT/Interest
    Turn Over Ratio
    • Inventory Turnover Ratio Sales/Inventory OR COGS/Inventory
    • Debtors’ Turnover Ratio Net Credit Sales/Trade Receivables
    • Fixed Assets Turnover Ratio Sales/Net Fixed Assets
    • Total Assets Turnover Ratio Sales/Total Assets

    15/02/2020 Foundation of Financial Management 1 BITS Pilani, WILPD


    Financial Ratio Analysis
    Ratio Formula
    Profitability Ratio
    • Gross Profit Margin Ratio Gross Profit/Sales
    • Net Profit Margin Ratio Net Profit/Sales
    • Return on Assets (ROA) PAT/Total Assets OR
    [PAT + Interest (1-Tax rate)]/Total Assets
    • Earning Power EBIT/Total Assets
    • Return on Capital Employed EBIT (1-T)/Total Assets
    • Return on Equity (ROE) Equity Earnings/Equity or PAT/Equity
    Valuation Ratio
    • Price-Earning Ratio (PE) Market Price per Share/Earning per Share
    • Yield (Dividend + Price Change)/Initial Price
    • Market Value to Book Value Market price per share ratio/book value per
    share

    15/02/2020 Foundation of Financial Management 2 BITS Pilani, WILPD


    Exercise Problem

    15/02/2020 Foundation of Financial Management 3 BITS Pilani, WILPD


    Exercise Problem

    15/02/2020 Foundation of Financial Management 4 BITS Pilani, WILPD

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