It refers to systematic use
of ratios to interpret the
financial statements in
terms of operating
performance and financial
position of the firm.
•A durable is a good that does not wear out quickly.
•Consumer Durable industry is growing by Leaps
•The Indian consumer have just not grown in
numbers but also in preferences.
•Its divided into two groups-Consumer Electronics
and Consumer Appliances.
•Industry has seen many changes in past few years.
•It measures the ability of the firm to meet
short time liabilities.
•In other words capacity of the firm to pay its
current liabilities as and when they fall due.
1. Current Ratio
2. Quick Ratio
3. Cash Ratio
•It is also know as turnover ratio.
•Using this a firm manages its current asset
and we can know how efficient the firm is.
1. Inventory Turnover Ratio
2. Receivable Turnover Ratio
3. Payable Turnover Ratio
•It throws light on long-term solvency of a firm
reflecting its ability to pay the long term creditors.
•It reflects the firms ability to repay the principal
amount when due and regular payment of
1. Debt Ratio
2. Debt Equity Ratio
3. Interest Coverage Ratio
Solvency or Leverage Ratio
There are 2 groups of profitability-
I. Profitability in relation to sales.
II. Profitability in relation to investments.
1. EBITDA Margin
2. Operating Profit Margin
3. Net Profit Margin
4. Return on Assets
5. Return on Equity