Accounting ratios
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This document defines and provides formulas for various types of accounting ratios used to evaluate business performance. There are 4 main categories of ratios: liquidity, solvency, activity/turnover, and profitability. Example ratios include the current ratio, debt to equity ratio, debtor turnover ratio, gross profit ratio, and return on investment ratio. Formulas are provided for each ratio to calculate it based on values from a company's financial statements.
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1) Raw Material for 60000 units
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Dokumen tersebut membahas tentang klasifikasi piutang dan metode akuntansi untuk piutang tak tertagih. Klasifikasi piutang mencakup piutang usaha, wesel tagih, dan piutang lain-lain. Dokumen tersebut juga membahas dua metode akuntansi untuk piutang tak tertagih yaitu metode penyisihan dan metode penghapusan langsung.
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Okay, let me calculate the working capital requirement step-by-step:
1) Raw Material for 60000 units
= 60000 * 60% of Rs. 5 = Rs. 18,00,000
2) Work in Progress for 60000 units
= 60000 * 10% of Rs. 5 = Rs. 3,00,000
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www.StokeNewingtonHistory.com
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Accounting ratios
- 1. Types and Formulae of ACCOUNTING RATIOS
- 2. ACCOUNTING RATIO is an arithmetical expression of relationship between two interrelated or related items.
- 3. 1. Liquidity Ratios 2. Solvency Ratios 3. Activity or Turnover ratios 4. Profitability Ratios
- 4. 1. Current Ratio 2. Liquid Ratio/Acid Test Ratio/Quick Ratio
- 5. Current ratio = current assets/current liabilities
- 6. Liquid ratio = liquid assets/current liabilities
- 7. 1. Debt to equity ratio 2. Total assets to debt ratio 3. Proprietary ratio 4. Interest coverage ratio
- 9. TADR = total assets/debt
- 10. PR = shareholders’ fund/total assets
- 11. ICR = net profit before interest&tax/interest
- 12. 1. Debtor turnover ratio 2. Creditor turnover ratio 3. Inventory or stock turnover ratio 4. Working capital turnover ratio
- 13. DTR = net credit sales/average dabtors+average bills
- 14. CTR = net credit purchases/average creditors+average bills
- 15. ITR = COGS/average stock
- 16. WCTR = sales/working capital
- 17. 1. Gross profit ratio 2. Net profit ratio 3. Operating ratio 4. Operating profit ratio 5. Return on investment (ROI) ratio
- 18. GPR = GP/sales *100
- 19. NPR = NP/sales *100
- 20. OR = COGS+operating expenses /sales *100
- 21. OPR = operating profit/sales *100
- 22. ROI = net profitbefore interest,tax÷nd/capital employed *100