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Ratios

This document lists and defines 27 different financial ratios used to analyze the financial performance and health of a business. Some of the key ratios included are: the current ratio, liquid ratio, debt equity ratio, gross profit ratio, operating expenses ratio, return on capital employed, return on equity, earnings per share, price earnings ratio, interest coverage ratio, and average collection period. The ratios measure elements of liquidity, leverage, expenses, profitability, and asset efficiency.

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Mithilesh Shinde
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18 views

Ratios

This document lists and defines 27 different financial ratios used to analyze the financial performance and health of a business. Some of the key ratios included are: the current ratio, liquid ratio, debt equity ratio, gross profit ratio, operating expenses ratio, return on capital employed, return on equity, earnings per share, price earnings ratio, interest coverage ratio, and average collection period. The ratios measure elements of liquidity, leverage, expenses, profitability, and asset efficiency.

Uploaded by

Mithilesh Shinde
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Current Assets 1. Current Ratio Current Liabilities Quick Assets 2.

Liquid Ratio Quick Liabilities Absolute Liquid Assets 3. Absolute Liquid Ratio Liquid Liabilities Proprietor's Funds 4. Proprietary Ratio Fixed Assets + Current Assets Funds entitled to fixed rate of interest or dividend 5. Capital Gearing Ratio Funds not so entitled to fixed rate of interest or dividend Stock 6. Stock - Working Capital Ratio Working Capital Long Term Debts Shareholders' Funds OR Long Term Debts Shareholders' Funds + Long Term Debts Revenue Statement Ratio Gross Profit x 100 8. Gross Profit Ratio Net Sales Expenses Ratios Cost of Goods Sold x 100 9.a Cost of Goods Sold Ratio Net Sales Total Operating Expenses x 100 9.bOperating Expenses Ratio Net Sales Relevent Group of Expenses x 100 9.cGroup of Expenses Ratio Net Sales Individual Expenses x 100 9.dIndividual Expenses Ratio Net Sales Cost of Goods Sold + Operating Expenses x 100 10. Operating Cost Ratio Net Sales Operating Net Profit x 100 11. Net Profit Ratio Net Sales OR Net Profit (Before Tax) x 100

7. Debt Equity Ratio

Net Sales Cost of Good Sold 12. Stock Turnover Ratio Average Stock Combined Ratios 13. Return on Capital Employed or Investment 14. Return on Total Resources Fixed Assets + Current Assets Net Profit (After Tax) x 100 15. Return on Proprietors' Funds Proprietors' Funds Net Profit (After Tax) - Preference Dividend x 100 16. Return on Equity Capital Equity Share Capital Net Profit (After Tax) - Preference Dividend 17. Earning Per Share No. of Equity Shares Equity Dividend Paid x 100 18. Dividend Payout Ratio Net Profit (After Tax) - Preference Dividend Market Price of Share 19. Price Earning Ratio Earning Per Share Net Profit Before Tax + Interest 20. Interest Coverage Ratio Fixed Interest Net Credit Sales 21. Debtors' Turnover Ratio Average Creditors + Average Bills Payable Net Credit Purchases 22. Creditors' Turnover Ratio Average Debtors + Average Bills Receivable Average Debtors + Average Bills Receivable x 12 / 52 / 365 23. Average Collection Period Net Credit Sales Average Creditors + Average Bills Payable x 12 / 52 / 365 24. Average Payment Period Net Credit Purchases Sales 25. Fixed Assets Turnover Ratio Fixed Assets Fixed Assets 26. Fixed Assets to Turnover Ratio Sales Dividend Per Share x 100 27. Dividend Yield Ratio Market Value Per Share Net Profit Before Tax + Interest x 100 Capital Employed Net Profit Before Interest & Tax x 100

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