Your SlideShare is downloading. ×
  • Like
Ratio analysis
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Ratio analysis

  • 843 views
Published

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
843
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
37
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Ratio Analysis
  • 2. RATIOS PROFITABILITY RATIOS CAPITAL TURNOVER IN RELATION TOSOLVENCY STRUCTURE (EFFICIENCY) SALES OTHER RATIOS RATIOS RATIOS RATIOS IN RELATION TO CAPITAL EMPLOYED
  • 3. SOLVENCY RATIOS CURRENT RATIO=CURRENT ASSETSCURRENT LIABILITIES
  • 4.  LIQUID RATIO/ QUICK/ ASID TEST RATIO=QUICK ASSETSQUICK LIABILITIESQUICK ASSESTS= CURRENT ASSETS- (STOCK+PREPAID)QUICK LIABILITIES= CURRENT LIABILITIES- BANK OD
  • 5.  PROPRIETORY RATIO=PROPRIETOR’S FUNDS 100 *TOTAL ASSETS
  • 6. CAPITAL STRUCTURE RATIOS DEBT-EQUITY RATIO= DEBT / EQUITY OR DEBT / DEBT+EQUITY
  • 7. CAPITAL WITH FIXED RATE OF RETURN = preference shares + debentures +term loansCAPITAL NOT WITH FIXED RATE OF RETURN = equity shares + reserves andsurplusIndicates the long debts borrowings as a proportion to owned fundsWhen the ratio is more than 1 the capital is said to be highly gearedIt reflects trading on equity (means more is the equity more is the chance of raisingfinance by way of preference shares/ debentures/ long term loans)
  • 8. TURNOVER/EFFICIENCYRATIO INVENTORY TURNOVER RATIO=COST OF GOODS SOLDAVERAGE STOCK
  • 9.  INVENTORY VELOCITY=3. 365days/12months/52weeks inventory turnover ratio