• Like
A) balance sheet ratio
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

A) balance sheet ratio

  • 338 views
Published

 

Published in Business , Economy & Finance
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
338
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
12
Comments
0
Likes
0

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. 1) CURRANT RATIOC.R= CURRANT ASSET / CURReNT LIABILITIESC.A=CASH, BANK, STOCK, DEBTORS, BILLS RECEIVABLE PREPAID EXPENSES, MARKET INVESTMENT, SHORT TERM LOAN (GIVEN)C.L=O/S EXPENCES, BILLS PAYABLE, CREDITORS, SHORT TERM LOAN (RECEIVE), BANK OVERDRAFT, PROVISION FOR TAX , PROPOSE DIVIDENT
  • 3. 2) QUICK OR LIQUID RATIOQ.R= LIQUID ASSETS / LIQUID LIABILITIESLiquid assets = current assets –stock – prepaid expLiquid LIABILITIES = current LIABILITIES - bank overdraft
  • 4. 3) Net working capital ration.w.c.r = net working capital / total assetsNet working capital = current assets – current liabilitiesTotal assets = fixed assets + investment + current assets
  • 5. 4) Gross profit ratiog.p.r = gross profit / net sales × 100g.P = sales – cost of goods soldNet sales = gross sale – sale return
  • 6. 5) Net profit ration.p.r = net profit after tax / net sales × 100
  • 7. 6) Operating profit margino.p.m = operating net profit / net sales × 100o.n.p = gross profit + operating inc - operating exp
  • 8. 7) Operating ratioo.R = cogs +operating exp / sales ×100Operating exp = office & administrative exp + selling & distribution + finance expCogs = op. stock + net purchases + direct wages + direct materials + other factory exp – closing stock
  • 9. 8) Return on capital employedr.o.c.e = net operating profit / capital employed × 100Capital employed = equity capital + pref. capital + borrowed fund – fictions assets
  • 10. 9) Return on equity shareholders r.o.e.s = n.p.a.t – pref. dividend / shareholders fund Shareholders fund = equity capital+ general reserve+ reserve fund - fictitious assets
  • 11. 10) Return on investmentr.o.i = n.p.a. interest & tax / shareholders fund × 100
  • 12. 11) Earning per sharee.p.s = n.p.a.t – pref. dividend / no. of equity share