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  • 39 Ratio Analysis All Formula by Me

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    angelohero6643
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    The document outlines different types of financial ratios used to analyze a company's performance. It discusses liquidity ratios that measure a company's ability to meet short-term obligations, leverage/capital ratios that indicate financial risk, activity ratios that show how efficiently a company uses its assets and manages inventory and accounts, and profitability ratios that evaluate overall earnings. The document provides examples of specific ratios under each category such as the current ratio, debt-to-equity ratio, inventory turnover ratio, and return on equity.

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    Ratio Analysis All Formula by Me

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    The document outlines different types of financial ratios used to analyze a company's performance. It discusses liquidity ratios that measure a company's ability to meet short-term obligations, leverage/capital ratios that indicate financial risk, activity ratios that show how efficiently a company uses its assets and manages inventory and accounts, and profitability ratios that evaluate overall earnings. The document provides examples of specific ratios under each category such as the current ratio, debt-to-equity ratio, inventory turnover ratio, and return on equity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    85 views9 pages

    39 Ratio Analysis All Formula by Me

    Uploaded by

    angelohero6643
    The document outlines different types of financial ratios used to analyze a company's performance. It discusses liquidity ratios that measure a company's ability to meet short-term obligations, leverage/capital ratios that indicate financial risk, activity ratios that show how efficiently a company uses its assets and manages inventory and accounts, and profitability ratios that evaluate overall earnings. The document provides examples of specific ratios under each category such as the current ratio, debt-to-equity ratio, inventory turnover ratio, and return on equity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 9

    TYPES OF RATIOS

    Liquidity ratios

    LEVERAGE/CAPITAL RATIOS

    ACTIVITY RATIOS

    PROFITABILITY RATIOS

    LIQUIDITY RATIOS

    CURRENT RATIO
    {CURRENT ASSETS:CURRENT LIABILTIES}

    ACID TEST/QUICK RATIO {(CURRENT ASSETSINVENTORIES):CURRENT LIABILTIES}

    CASH/ABSOLUTE LIQUIDITY RATIO {(CASH+MARKETABLE

    SECURITIES):CURRENT LIABILITIES

    BASIC DEFENSE INTERVAL


    {(CASH+RECEIVABLES+MARKETABLE SECURITIES):[(OPERATING EXPENSES+INTEREST+INCOME TAXES)/365]}

    NET WORKING CAPITAL RATIO


    [Current Assets - Current Liabilities (excluding short-term bank borrowing)]

    CAPITAL STRUCTURE/LEVERAGE RATIOS


    CAPITAL STRUCTURE RATIOS COVERAGE RATIOS
    DEBT SERVICE COVERAGE RATIO [EARNINGS AVAILABLE FOR DEBT SERVICE:(INTEREST+INSTALLMENTS)] INTEREST COVERAGE RATIO (EBIT:INTEREST) PREFERENCE DIVIDEND COVERAGE RATIO (EAT:PREFERENCE DIVIDEND LIABILITY) CAPITAL GEARING RATIO [(PREF SHARE CAPT+DEBEN+LONG TERM LOANS):(EQUITY SH CAP+RESERVES&SURPLUS-LOSSES)] (FIXED ASSESTS:LONG TERM FUNDS) PROPRIETORY RATIO (PROPRIETORY FUND:TOTAL ASSETS)

    EQUITY RATIO (SHAREHOLDERS EQUITY:TOTAL CAPITAL EMPLOYED)

    DEBT RATIO (TOTAL DEBT:CAPITAL EMPLOYED)

    DEBT TO EQUITY RATIO (TOTAL LIABILITIES:SHAREHOLDERS EQUITY)

    ACTIVITY RATIOS

    CAPITAL TURNOVER RATIO


    (SALES:CAPITAL EMPLOYED)

    FIXED ASSETS TURNOVER RATIO (SALES:CAPITAL ASSETS)

    WORKING CAPITAL TURNOVER RATIO


    (SALES:WORKING CAPITAL)

    INVENTORY TURNOVER RATIO (SALES:AVERAGE INVENTORY) OR (COST OF SALES:AVERAGE STOCK) AS WELL AS (RAW MATERIAL CONSUMED:AVERAGE R.M STOCK) IN CASE OF RAW MATERIALS

    DEBTORS TURNOVER RATIO (CREDIT SALES:AVERAGE ACCOUNTS RECEIVABLE) AVERAGE COLLECTION PERIOD (AVERAGE A/CS RECIEVABLE:AVERAGE DAILY CREDIT SALES) AVERAGE CREDIT SALES (CREDIT SALES:365)

    CREDITORS TURNOVER RATIO (CREDIT PURCHASES:AVERAGE A/CS PAYABLE) AVERAGE PAYMENT PERIOD (AVERAGE A/CS PAYABLE:AVERAGE DAILY CREDIT PURCHASES) AVERAGE CREDIT PURCHASES (CREDIT PURCHASES:365)

    PROFITABILITY RATIOS

    BASED ON REQUIREMENT FOR ANALYSIS FROM OWNERS POINT OF VIEW

    BASED ON ASSETS/ INVESTMENTS

    BASED ON SALES OF THE FIRM

    BASED ON CAPITAL MARKET INFORMATION

    PROFITABILITY RATIOS REQUIRED FOR ANALYSIS FROM OWNERS POINT OF VIEW

    RETURN OF EQUITY (PROFIT AFTER TAX:NET WORTH)

    EARNINGS PER SHARE (NET PROFIT AVAILABLE TO EQUITY SHAREHOLDERS:NO,OF ORDINARY SHARES OUTSTANDING

    DIVIDEND PER SHARE (TOTAL PROFITS DISTRIBUTED TO EQ. SHAREHOLDERS:NO, OF EQ. SHARES)

    PRICE EARNING RATIO (MARKET PRICE PER SHARE:EARNINGS PER SHARE)

    NET PROFIR MARGIN (NET INCOME:REVENUE)

    ASSET TURNOVER (REVENUE:ASSETS)

    EQUITY MULTIPLIER (ASSETS:SHAREHOLDERS EQUITY)

    PROFITABILITY RATIOS BASED ON ASSETS/INVESTMENTS

    RETURN ON CAPITAL EMPLOYED [(RETURN:CAPITAL EMPLOYED)*100]

    RETURN ON INVESTMENT [(RETURN:CAPITAL EMPLOYED)*100] OR (PROFITABILITY RATIO)(CAPITAL TURNOVER RATIO)

    RETURN ON ASSETS (NET PROFIT AFTER TAXES:AVERAGE TOTAL ASSETS) OR (NET PROFIT AFTER TAXES:AVERAGE TANGIBLE/FIXED ASSETS)

    PROFITABILITY RATIO [(RETURN:SALES)*100]

    CAPITAL TURNOVER RATIO (SALES:CAPITAL EMPLOYED)

    PROFITABILITY RATIOS BASED ON SALES OF FIRM

    GROSS PROFIT RATIO [(GROSS PROFIT:SALES)*100]

    OPERATING PROFIT RATIO [(OPERATING PROFIT:SALES)*100]

    NET PROFIT RATIO [(NET PROFIT:SALES)*100]

    P/V RATIO {[(SALES-VARIABLE COST):SALES]*100}

    OPERATING PROFIT (SALES-COST OF SALES)

    PROFITABILITY RATIOS BASED ON CAPITAL MARKET INFORMATION

    PRICE-EARNING RATIO (AVERAGE SHARE PRICE:EPS) OR (CLOSING SHARE PRICE:EPS)

    YIELD [(DIVIDEND:AVERAGE SHARE PRICE)*100] OR [(DIVIDEND:CLOSING SHARE PRICE)*100]

    (MARKET VALUE PER SHARE)/(BOOK VALUE PER SHARE) [AVERAGE SHARE PRICE:(NET WORTH/NO, OF EQ. SHARES)] OR [CLOSING SHARE PRICE:(NET WORTH/NO, OF EQ. SHARES)]

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